Family gift funds and a down payment assistance (DPA) program can sit on the same FHA purchase. They are not the same source of funds. The gift needs a donor paper trail. DPA needs the agency’s note, disclosures, and first-lien pairing. Snapshot as of 2026-08.
Two different instruments
- Gift. Eligible donor, gift letter, evidence the money left the donor and arrived with you or at closing. Not repayable. Details: gift-fund rules.
- DPA (including many Utah Housing Corporation products). Often a second mortgage, a silent second, or a grant with recapture. Income, purchase-price, education class, and occupancy tests apply. Look at the grants page for the map, then confirm the live agency guide.
How stacking usually works on FHA
Gift funds from an eligible donor can often cover the full down payment when documented correctly. Lenders still need a sourced paper trail; that is not the same as “no seasoning required.”
- The first lien is FHA (or another program the DPA allows). Not every DPA pairs with every first lien.
- The DPA fills part of the down payment or closing costs per that product’s formula.
- A gift can fill the remainder when the donor and paper trail meet FHA and the DPA overlay.
- Layered liens still have to fit CLTV and any subordinate-financing rules. That is an underwriting test.
Do not move family money into your account “to look stronger” before the DPA underwriter has a sourcing plan. Large undocumented deposits stall both layers.
What this page will not do
It will not list this year’s UHC dollar amounts, rate sheets, or income limits. Those go stale. It will not tell you that you will receive assistance. Ask a loan officer which first-lien and DPA pairing is even being offered this month, then read cash besides down payment so you still fund prepaids.
Common questions
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What to do next
Education first. A conversation with a loan officer is how you find out what may actually fit your file.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures