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Gift Fund Documentation Wizard

Can your donor help, and what do you need to document?

Choose your loan type, how you’ll use the home, and who’s giving the money. We’ll tell you whether the lender will accept the gift and list the paperwork you’ll need.

  1. A gift has to be a true gift

    Lenders accept only when nothing has to be paid back. A loan would add a monthly payment that counts against your .

  2. Each loan type has its own rules

    Conventional, FHA, VA, and USDA loans each set who can give you money and for which kinds of property. A gift that works for one loan may not work for another.

  3. Then you prove it on paper

    You’ll need a signed and bank records showing the money leaving the donor’s account and arriving in yours.
Tell your lender about a gift before the money moves; a documented transfer is much easier to approve than an unexplained deposit. Down payment strategies covers gifts alongside other ways to fund a down payment.
Your loan and home

If you don't know your loan type yet, start with conventional, the most common, and compare.

The gift

Who is giving the money, how much, and the total down payment it goes toward.

$
$

Can you use this gift?

Yes, it’s allowed

Gift covers 50% of the down payment. From your own savings: $25,000.

What this means

Yes: a $25,000 gift from your parent can go toward a conventional loan on a home you’ll live in. It covers 50% of your $50,000 down payment, so $25,000 comes from your own savings. The main work is paperwork: a signed gift letter and a clear record of the money moving from the donor’s account to yours.

These rules follow Fannie Mae, Freddie Mac, and agency guidelines. Individual lenders can add stricter requirements, so confirm with yours.

Rules that apply

  • •Buying a 2-4 unit home to live in? With less than 20% down, you must pay 5% of the price from your own funds; the gift can cover the rest. On a 1-unit home there is no minimum.
  • •Funds do not need to be "seasoned" if the gift letter and paper trail are clean.

Documentation checklist

  1. 1Gift letter signed by donor (relationship, amount, address, "no repayment expected" statement)
  2. 2Donor bank statement(s) showing the funds
  3. 3Paper trail: copy of donor check or wire transfer
  4. 4Borrower deposit slip / bank statement showing receipt
The must say: donor name, address, phone, relationship to borrower, dollar amount, date of gift, address of property being purchased, and explicit statement that no repayment is expected or required. Signed by the donor. A loan disguised as a gift is mortgage fraud and the lender will check.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

Who can give, what the lender needs to see, and the loan terms that change the answer.

Gift funds
Money someone gives you toward a home purchase with no expectation of repayment. Lenders accept it from approved donors, with paperwork. More
Donor
The person or organization giving the money. Each loan type has its own list of acceptable donors.
Gift letter
A signed statement from the donor listing the amount, their relationship to you, and that no repayment is expected. Most lenders supply a template.
Paper trail
Bank records showing the gift leaving the donor’s account and arriving in yours, such as statements, a copy of the check, or a wire confirmation.
Primary residence
The home you live in most of the year. Gift rules are most generous here, and FHA, VA, and USDA loans finance only primary residences.
Interested party
Anyone who profits from the sale, such as the seller, builder, agents, or lender. Money from them counts as a concession, which has its own limits.
FHA, VA, and USDA loans
Government-backed mortgages. FHA allows as little as 3.5% down; VA (for eligible veterans and service members) and USDA (for eligible rural areas) require no down payment. More
DTI (debt-to-income ratio)
The share of your gross monthly income that goes to debt payments. A “gift” that must be repaid is a loan, and its payment would count here. More

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