Gifts

🎁 Using Gift Funds for Your Mortgage Down Payment

Great news – our underwriters allow gifts for up to 100% of your down payment and closing costs. If you are receiving gift funds to help buy your home, here is exactly what you need to know and prepare.

⚠️ Key Rules for Gift Funds

👨‍👩‍👧 Who Can Give a Gift

Gifts can only come from immediate family members. Eligible gift givers are:

Spouses / Fiances
Parents
Grandparents
Siblings
Aunts / Uncles

❌ Cash can NEVER be gifted on a mortgage transaction. Gift checks or wire transfers are the easiest to document. We strongly discourage direct bank-to-bank transfers.

📅 Timing matters: All gift funds must be deposited into your bank account at least 2 weeks before your closing date. That said, we strongly recommend depositing gifts as early as possible – ideally before you even begin your home search.

📋 Required Documentation for All Loans

Your mortgage underwriter will require the following for every gift, regardless of loan type:

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A fully filled out and signed gift letter. Your loan officer will prepare this for you – just provide them with the gift amount and the gift giver’s full name, address, phone number, and email address so the letter can be sent to everyone for electronic signatures.

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A copy of the gift check and the deposit slip showing the funds were deposited into a bank account listed on your loan application.

🏠 FHA Loans – Additional Requirement

Applies only if you are using FHA (3.5% down) financing

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Gift giver’s most recent bank statement (all pages) – required on 100% of FHA loans, with no exceptions. This documents that no suspicious cash deposits were made by interested parties (realtors, sellers, brokers, etc.) around the time the gift check was written.

🔒 Privacy note: If the gift giver does not feel comfortable sharing their bank statement with you, they can email or fax it directly to your loan officer. The information will remain confidential. The full statement must be provided (all pages) and nothing can be redacted or whited out.

💡 Pro Tip – How to Avoid Gift Documentation Altogether

Mortgage lenders typically review your bank statements for the previous 2 to 3 months. If your gift is deposited well before you apply for a loan, the money becomes “seasoned” – and none of the gift documentation listed above is required at all.

The strategy: Ask your gift giver to deposit funds into your account months before you begin the loan process. By the time your lender pulls your bank statements, the money simply looks like your own savings.

⚠️ Important: This strategy does not change the genuine gift requirement. If the money involves any expectation or implication of repayment, it is a loan – not a gift – and must be disclosed. Undisclosed loans can affect your ability to qualify for a mortgage.

Questions About Gift Funds?

Your loan officer can walk you through the entire process and prepare your gift letter. We are available seven days a week.

📝 Start Your Application
📞 Call 314-329-7314