Down Payment & Assistance
Can I use gift money for a down payment?
Updated Jul 1, 2026
The short answer
Yes — many loan programs allow all or part of your down payment to come from a gift, typically from family, as long as it is documented properly. Lenders require a gift letter stating the money is a gift and not a loan, and they may ask to trace the funds. Rules on who can give and how much vary by loan type, so confirm your program’s requirements.
Key points
- Gifts are widely allowed for down payments.
- A signed gift letter is required.
- Lenders may trace the funds to their source.
- Allowable donors and amounts vary by loan type.
Documenting a gift
The gift letter names the donor, the amount, the relationship, and confirms no repayment is expected. Deposit and paper-trail rules exist to prevent undisclosed loans, so follow your lender’s instructions exactly.
Sources
Every claim above traces to a public government source.
- ViewT1Using gift funds for a down payment
Consumer Financial Protection Bureau · Government / primary · 2024