Can I use gift money for my down payment?
By AbeAugust 12, 2026Purchase Loans
Short Answer
Yes, many mortgage programs allow eligible gift funds for some or all of the down payment and closing costs. The donor, amount, documentation, and permitted use depend on the loan program.
Full Detailed Answer
The lender will usually require a gift letter stating that repayment is not expected. The transfer must also be documented through acceptable account records, wire evidence, or closing documentation. Cash that cannot be traced is generally not acceptable.
Programs differ on who may give the gift and whether the borrower must contribute any personal funds. Occupancy, property type, number of units, and loan-to-value can affect the rules.
Tell your loan officer about the gift before funds move. A last-minute unexplained deposit can delay underwriting, while a planned and documented transfer is much easier to approve.
What Abe Will Review
- Eligible donor
- Gift letter
- Proof of transfer and receipt
- Any required borrower contribution
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