Gift funds
Money from an eligible donor toward your down payment or closing costs, allowed when documented with a clear paper trail.
Most programs permit gift funds from an eligible donor, usually a family member, supported by a gift letter stating that no repayment is expected. Some programs allow a gift to cover the entire down payment.
The documentation is the hard part. Lenders trace the money from the donor’s account into yours, so a cash deposit or a transfer that cannot be sourced can hold up a file even when the gift itself is perfectly allowable.
Related terms
- Down paymentThe share of the purchase price you pay in cash, becoming your starting equity in the property.
- ReservesLiquid assets left after closing, measured in how many months of the full housing payment they would cover.
- UnderwritingThe lender’s review of your credit, income, assets, and the property to decide whether the loan can be made.
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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