Most mortgage programs let you use gift money from family for your down payment and closing costs. You’ll need a signed gift letter stating the money doesn’t have to be repaid, and proof of the transfer from the donor’s account to yours. Who can give, and how much of your own money you must also contribute, depends on the loan type.
Who can give you money
| Loan | Acceptable donors (generally) |
|---|---|
| Conventional | Relatives by blood, marriage, adoption or legal guardianship; a fiancé or domestic partner |
| FHA | Family, close friends with a documented relationship, employers, labor unions, and some charities and government programs |
| VA and USDA | Generally relatives and others without an interest in the sale |
The seller, real estate agents, builders and anyone else with a financial interest in the sale can’t give you gift money; that’s treated as a seller concession instead, with its own limits.
The gift letter
Your lender will provide a form or tell you what to include. Typically:
- The donor’s name, address, phone number and relationship to you.
- The exact amount and the date of the transfer.
- A statement that it’s a gift and doesn’t have to be repaid.
- The address of the home you’re buying, if known.
- Signatures from you and the donor.
Document the money trail
Lenders need to see the money move. Usually that means a bank statement or record from the donor’s account showing the withdrawal, and your statement showing the deposit, or the gift sent directly to the title company before closing. Cash gifts are hard to document; ask the donor to transfer by check or wire. Add the gift paperwork to your list with the pre-approval document checklist.
Do you need to put in your own money too?
For a one-unit primary residence, conventional loans generally allow the entire down payment to come from a gift. For multi-unit homes, second homes or some lower down payment programs, you may need to contribute some of your own funds. FHA allows the full 3.5% down payment to be a gift. Ask your lender which rules apply before the money moves.
Timing
Deposit the gift early, ideally before you apply, so it shows up cleanly in your statements, or keep it with the donor until the lender tells you how to transfer it. Either way, keep every record. Large unexplained deposits slow down underwriting.
Taxes
Gift tax rules apply to the giver, not to you. Large gifts above the annual exclusion may require the donor to file a gift tax return, though tax is rarely owed. The donor should check with a tax professional.
See how a gift changes your plan
A gift can move your purchase date up or let you put more down to avoid mortgage insurance. Update your numbers with the down payment timeline and the PMI calculator.
Common questions
Can my whole down payment be a gift?
Often yes for a one-unit primary home with a conventional or FHA loan. Multi-unit homes and second homes may require some of your own funds.
Can a friend give me down payment money?
FHA allows gifts from close friends with a documented relationship; conventional loans generally require a relative, fiancé or domestic partner.
Do I pay taxes on a down payment gift?
Gift tax rules apply to the giver, not the recipient. Large gifts may require the donor to file a gift tax return, but tax is rarely owed.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.