Credit and Qualification
Using Gift Funds
Published 2026-07-31 · Last reviewed 2026-07-31 · Reviewed by Jim Lyddon, NMLS #2573609
Many programs allow all or part of a down payment to come from an eligible gift. The funds must be documented with a gift letter and a clear paper trail showing the transfer, and the donor relationship must meet the program's requirements.
What to know
- A signed gift letter stating the funds are not a loan is required.
- Transfer documentation is needed from donor account to yours.
- Eligible donor relationships vary by program.
- Timing matters — deposit the gift where it can be traced cleanly.
How Jim approaches this
Bring your specific numbers. General education gets you oriented, but the decision only becomes clear when it is run against your income, your cash position, the property you are considering and how long you plan to keep the loan. That conversation is free and does not require an application.
The information on this website is provided for general education only and does not constitute financial, tax or legal advice. Loan programs, guidelines and availability are subject to change and to borrower and property qualification.
JHL Mortgage, Inc. is an Equal Housing Opportunity lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.