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I'm in the process of looking for my first home. I've found a new housing development that I like, that requires you to use their lender. With a 20% down payment, I qualify for a loan. I plan to come up with 10%, while borrowing 10% from my Mom. The lender requires, however, that "the maximum combined gift funds received per household may not exceed loan closing costs and two months housing reserves as required by lender."

My question is: Will money from my Mom be considered a gift if she is not on the loan? What would be the best way for my Mom to give me the money so as to qualify for the loan?

Thanks in advance for any help.

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