Yes — family gift funds are commonly used for conventional down payments and closing costs. The key is a proper gift letter, proof the donor can give the money, and a clear paper trail into your account.
Gifts can cover most or all of your down payment when documentation meets underwriting guidelines.
Parents, grandparents, siblings, and other relatives are the most straightforward gift sources under conventional guidelines.
The donor must state the amount, relationship, and that repayment is not expected.
Bank statements showing the funds leave the donor and arrive in your account close the paper trail.
Gifts can typically be used for earnest money, down payment, and closing costs.
Primary residences have the most flexible gift rules; second homes and investment properties can be tighter.
A clean gift file prevents last-minute conditions that delay closing.
A little prep keeps the gift from becoming a closing-day headache.
Follow this sequence so underwriting can clear the gift condition the first time.
Step 1
We verify donor relationship and whether the gift can cover the full down payment on your loan type.
Step 2
Use a lender-approved letter so wording matches underwriting expectations.
Step 3
Move funds with a clear trail — then upload statements and the gift letter together.
Step 4
Once the gift is sourced, your buying power and down payment plan are solid.
Related guides to help you compare options and move toward pre-approval.
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Often yes on a primary residence conventional loan, depending on the loan-to-value and program. Second homes and investment properties may require some of your own funds.
Typically a relative such as a parent, grandparent, sibling, or spouse. Non-relative gifts may be restricted or not allowed depending on the scenario.
No — if repayment is expected, it is a loan and must be treated as debt. The gift letter must confirm there is no repayment obligation.
Yes. Gift funds can commonly be used for down payment, earnest money, and closing costs when properly documented.
Send us the donor relationship and amount — we will tell you exactly what paperwork underwriting will need before you go under contract.