$40,000 runs well past typical closing costs at most price points, so part of the gift lands in the down payment either way. The better question is what the remainder actually does for her. Honest answer: extra down payment helps less than people expect. As a rough illustration, an additional $20,000 to $30,000 down on a mid-sized purchase might change the payment by a couple hundred dollars a month, which translates to a fairly small change in the income needed to qualify. If she has room in her qualification already, more down will not transform what she can buy. Discount points can stretch purchasing power further per dollar, though our lean is against paying points, since a refinance before break-even wipes out what she paid and nobody can promise where rates go. The points comparison is something some people want to see, and we will run it on her real numbers. Two practical steps: document the money as a gift with a gift letter, since gift funds have their own paper trail, and have her model the exact split, down payment versus closing costs versus points, in a free Roadmap conversation before committing the funds.