When buying a home from a family member they can provide you what is called a gift of equity, this is when the seller (your family member) gifts you equity in the property. Basically they sell you the property for less than what it is worth, allowing the buyer to purchase the home at it value, but financing less the amount of the gift.

This helps the buyer with the down payment. For example; Julio is going to buy Frank's house for $250k; the house is appraised at $290k, and he finances $280k. The gift of equity is $30K, therefore reducing the down payment required Julio.

Most lenders have a maximum percentage that is allowed to be gifted. Prior to committing to any particular lender make sure you understand all the particulars of their loan offer.

There are potential tax consequences for gifts of equity. You should discuss the particulars with a tax advisor or qualified accountant to understand how it can impact you.