Answer: Yes, when you refinance a primary or second home, you can use gift money (also known as gift funds) to cover all or part of your closing costs.
Typically, you’ll need to prepare a gift letter to document where the funds came from. The completed gift letter should include the donor’s information and signature. Alternatively, the gift donor can transfer the funds directly to your lender.
A Better Mortgage Home Advisor can talk you through the specific requirements.