Helping  a family member buy a home is not uncommon. A study by the National Association of Realtors (NAR) shows that 26 percent of all first-time buyers had help from a relative or friend.

However it is important to say that the financial meltdown and decline in the housing market has made lenders tighten their standards. As a result, more money is neede for your down payment. The NAR study shows that first time homebuyers noe typically need 5 percent down payment, which is up from 2 percent in 2007.  The days of "no money down loans" are long gone.

So how do you get more money for your down payment?  Anyone can make a gift of up to $13,000 tax free to anyone else, each year.  This means a married couple like your parents or grandparents could give you $26,000.  Timing and documentation is important in the transfer of these funds. Loan underwriters are suspicious of the origin of large amounts of cash.  Make a wire transfer or write a check so there is a clear trail of legitimate funds.  Other requirements may be required if you are participating in a government program like VA,  or FHA as part of your loan. It is always best to get pre-qualified before buying. Your real estate agent can introduce you to a good mortgage broker in your area.