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Am I allowed to get a gift for closing costs and down payment? If so, who am I allowed to accept gifts from?

The answer to this question is a resounding: Yes. Lenders these days realize that coming up with the money needed for a down payment or closing costs is no easy task, which is why many borrowers are able to factor in monetary gifts with their own contributions. See this FAQ to learn more about how much money you’re allowed to accept.

While it’s perfectly acceptable to accept a monetary gift, you are only allowed to accept these gifts from certain donors. Who the donor is depends upon the mortgage product. See below;

  • Fannie Mae (Conventional): Acceptable donors include Family, Fiancé or Domestic Partner. Friends are not allowed.
  • Freddie Mac (Conventional): Acceptable donors include Family, Fiancé or Domestic Partner. Friends are not allowed.
  • FHA: Acceptable donors include Family, Fiancé or Domestic Partner. Friends are also allowed; however your relationship must be clearly defined relationship.
  • USDA: Contact a mortgage expert for more info.
  • VA: Contact a mortgage expert for more info.

 

To learn more about specific mortgage requirements, be sure to speak with an experience mortgage broker.

 

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