Which entity is prohibited from giving gift funds for home purchases?

In the context of home purchases, particularly when discussing gift funds that assist buyers, an individual with an interest in the property sale is prohibited from providing these funds. This is because allowing such individuals to give gift funds could lead to conflicts of interest and potential abuse of the financing process. For example, if a seller or real estate agent were to provide gift funds, it could create the appearance that the funds are being used to artificially inflate the property’s value or facilitate a transaction in a way that is not transparent to lenders.

Gift funds should ideally come from sources that do not have a financial stake in the property to ensure that they are offered freely, without any strings attached. This guideline helps maintain the integrity of the home buying process and protects both buyers and lenders by ensuring that transactions reflect true market value without undue influence from those who may benefit financially from the sale.

In contrast, charitable organizations, government agencies, and family members such as domestic partners or fiancés are allowed to provide gift funds, as they are typically not in a position to influence the property’s sale in a manner that could compromise the transaction's integrity.