Gifted Funds for Mortgage Down Payment

Mortgage down payments for loans with 80% or less loan-to-value, on a one-to-four primary residence can now come entirely from gifted funds! If the loan-to value is greater than 80%, gifted funds may be used for all of the down payment on one-unit primary residences. For other loans greater than 80%, two-to-four unit primary residences, second homes and high-balance mortgage loans, the borrower must make a 5% borrower contribution from his or her own funds. After the minimum has been met, gifts may be used to supplement the down payment, closing costs and reserves.

Gifted funds can be provided by a spouse, child or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption or legal guardianship. The funds can also come from a fiance, fiancee or domestic partner.