What Are The Down Payment Gift Rules?

November 06, 2020 by Dan Green

Conventional mortgages are loans backed by Fannie Mae and Freddie Mac, which includes special low-down payment loan programs such as the HomeReady mortgage; the Conventional 97 mortgage; and, the HomePossible mortgage.

For home buyers using a conventional mortgage to finance their home, 100% of the down payment can come from a cash gift.

The lone exception is when a buyer is buying a home with either 2-, 3- or 4-units, or a home that’s a vacation home; and, the total down payment is less than twenty percent overall.

For everyone else, the cash gift of down payment can be the entirety of their down payment on the home.

Are you a first time home buyer?

Let us know if you’ve done this before - whether you’re a seasoned pro or buying for the first time. We’ll share the perfect information with you as you need it.

More than 25,000 home buyers have customized their content

Sign up to customize yours

Already have an account? Log In