Skip to main content
The Mortgage Firm

News & Insight

Gift Funds: A Great Down Payment Source

By TMF Marketing

Gift Funds

If you aren’t sure how you will come up with the cash upfront for your down payment, consider asking a family member to contribute a gift fund. A gift fund is a monetary gift from a qualifying donor that is intended to be used for a down payment and will not be repaid. Depending on the type of loan you are using could determine who would be considered as a qualifying donor. Below we have listed examples of acceptable donors*:



  • Spouse

  • Child

  • Other Dependent

  • Has any relation by blood, marriage, adoption, or legal guardianship.



  • Domestic partner 

  • Relative of domestic partner

  • Fiancée/Fiancé

  • Former relative

  • Godparent


*Disclaimer: Acceptable donors lists were provided by Fannie Mae for conventional, other programs may vary, and are subject to change without notice. Donors cannot have affiliation with builders, developers, real estate agents, or other interested parties to the home in question. 


Please click here to see an example of a Gift Letter that is required to be used when utilizing Gift Funds towards a down payment. Be sure to check with your Loan Originator if there is a maximum amount of funds that can be contributed and what documentation is required to prove the transfer of funds. 


Get started