Can I use gift funds for a down payment?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes. On FHA loans your entire down payment can be a gift from a family member, and conventional loans allow gift funds for primary residences as well. The money must be a true gift with no repayment expected.
You'll need a signed gift letter stating the donor's relationship, the amount, and that repayment isn't required, plus a paper trail showing the funds leaving the donor's account and landing in yours. We give you the exact letter and documentation steps so the gift clears underwriting without delays.
Who can gift you the money
Yes. You can use gift funds for your down payment on most Florida loans. The gift has to come from an accepted source. For FHA loans, that means a family member, an employer, a close friend with a clear interest in you, or a charity. Conventional loans keep the list tighter and lean toward relatives.
The person who gives the money is called the donor. The donor signs a short gift letter. It states the amount, the date, and that you never have to pay it back. We send you a template so this step takes minutes, not days.
What lenders check on the paper trail
We have to trace the money. That means a copy of the donor's check or transfer and a bank statement that shows the funds landing in your account. This proof keeps your file clean and your closing on track.
Deposit the gift early if you can. A seasoned deposit that sits in your account for a full statement cycle draws fewer questions. Want a quick read on how much gift money you may need? Try our down payment calculator, then apply when you feel ready.