Purchase · 6 min read
Can my parents give me the money for the down payment?
October 5, 2026 · Written by Bill Egan, NMLS 7342
Short answer
Yes. A parent can give you the down payment on most purchase loans, and so can other close family. A spouse, a brother or sister, a grandparent, and other relatives the program allows can give it too. It has to be a true gift, not a loan you pay back. The file needs a short gift letter, proof the money left their account, and proof it landed in yours or at the title company. A screenshot of a Venmo transfer is usually not enough.
01
Why this comes up
You have the income and the credit, but not enough cash saved for the down payment and closing costs. A parent offers to help, or a sister or a grandparent does. You heard that only a parent can give the money, and you are not sure the lender will accept family money at all.
02
Where this goes wrong
The money shows up as a large deposit with no paper trail, or the person who gave it calls it a gift and then expects monthly payback. Either one can stall the file right before closing. A builder, a developer, or a real estate agent cannot give the down payment, even if they offered to help the deal along.
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What we do about it
We tell you who can give the money on this loan before anyone sends it.
Fannie Mae — Selling Guide B3-4.3-04
- Your spouse, your child, or anyone related to you by blood, marriage, adoption, or legal guardianship
- A domestic partner, or a relative of that partner
- A fiancé or fiancée
- A former relative
- Someone with a long family-like relationship
Freddie Mac — Guide Section 5501.4
- Your spouse, child, or dependent
- Anyone related to you by blood, marriage, or adoption
- A guardian, or a person you are the guardian for
- A fiancé or fiancée
- A domestic partner
- An unrelated person with close family-like ties
- A business, trust, or estate of one of those people
FHA — Handbook 4000.1
- A parent, stepparent, or grandparent
- A child, brother, or sister
- A spouse or domestic partner
- An uncle, an aunt, or an in-law
- Your employer or labor union
- A close friend with a documented interest in you
- A charity, or a government homebuyer program
The donor still cannot be the builder, the developer, or the real estate agent. We send a simple gift letter and check that the transfer matches before underwriting treats the cash as yours.
In many files, the simplest way to avoid the paperwork is to have the donor send the money straight to the title company the day before closing, or the day of closing. It does not have to land in your checking account first. That skips the deposit on your statement and the matching transfer papers, which is where these files get stressful and confusing. You still sign a gift letter. The title company’s receipt at closing is the transfer proof.
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How to get ready
Ask the giver not to send the money until we say so. A parent, a sibling, and a grandparent are allowed on these programs, and other people can be too. In many cases, have them send the gift straight to the title company the day before closing, or the day of closing. That skips the deposit on your bank statement and the transfer paperwork that gets confusing. Have them sign a gift letter that says the money does not have to be paid back. The title company’s receipt at closing is the transfer proof. If the money does go into your account instead, download a full statement showing the withdrawal. Do not move the funds through cash or an unlabeled app transfer.