Can gift funds cover my down payment?

Match the gift to the property and program

Fannie Mae permits eligible gifts for a principal residence or second home, not an investment property. Its rules generally require no borrower contribution for an eligible one-unit principal residence; other scenarios can require the borrower’s own funds. Fannie Mae — Personal Gifts ↗

Document the transfer before moving money

An acceptable donor and signed gift letter are only part of the process. The lender also needs evidence of the funds and transfer. Confirm the required documents before transferring money, and do not describe repayable money as a gift. Fannie Mae — Personal Gifts ↗

Keep the whole cash budget in view

Ask whether the gift will cover the down payment, closing costs, or both, and what other funds you must document. Keep a copy of the lender’s instructions so the donor knows which records to provide. Share sensitive records through the lender’s secure upload process.

Put it into perspective

An example, not an offer

Illustration only: on a $500,000 purchase, a 5% down payment is $25,000. A proposed $25,000 gift might cover that amount if the program and documentation qualify; it does not automatically cover closing costs or establish loan approval.

Related questions

• Do I need 20% down to buy a home in Washington?
• What closing costs should I budget for a Washington home purchase?
• Can I finance a condo or a second home?

Check the original guidance

• Fannie Mae — Personal Gifts ↗

Requirements and availability can change. Confirm the program and lender terms for your application.