Fannie Mae accepts gifts from relatives and certain non-relatives with a familial relationship, Freddie Mac from a Related Person or that person's business, trust or estate (plus wedding and graduation gifts from others), and FHA from family members, employers or labor unions, close friends with a documented interest, charities and government programs; VA and USDA exclude donors with an interest in the sale. All five require a gift letter with the amount and a no-repayment statement, plus proof the funds reached the borrower or closing agent. Fannie Mae and Freddie Mac do not allow gifts on investment properties.
Fannie Mae (conventional)
- Gifts may fund the down payment, closing costs or reserves on a principal residence or second home, not an investment property. Fannie Mae B3-4.3-04
- Acceptable donors: relatives (spouse, child, other dependent, or anyone related by blood, marriage, adoption or legal guardianship) and non-relatives with a familial relationship, such as a domestic partner, fiancé(e), former relative or long-standing mentor. Fannie Mae B3-4.3-04
- The donor may not be or be affiliated with the builder, developer, real estate agent or other interested party, though an acceptable, unaffiliated seller may give a gift. Fannie Mae B3-4.3-04
- A 5% minimum contribution from the borrower's own funds applies only to a two- to four-unit principal residence or second home above 80% LTV, CLTV or HCLTV; at 80% or less, all funds can come from a gift. Fannie Mae B3-4.3-04
- The gift letter must state the actual or maximum dollar amount, that no repayment is expected, and the donor's name, address, telephone number and relationship; the lender verifies the funds in the donor's account or their transfer. Fannie Mae B3-4.3-04
Freddie Mac (conventional)
- Gifts are eligible for a primary residence or second home when they need not be repaid and the donor is a Related Person or that person's business, trust or estate; they are not eligible for investment properties. Freddie Mac 5501.4
- Wedding and graduation gifts may also come from unrelated persons (primary residence only) if deposited within 90 days of the marriage license or graduation date. Freddie Mac 5501.4
- For a second home above 80% LTV, TLTV or HTLTV, gifts are permitted only if the borrower makes a down payment of at least 5% from personal funds. Freddie Mac 5501.4
- The donor-signed gift letter must give the donor's name, mailing address, telephone number and the actual or maximum amount, and state it need not be repaid; receipt is shown, for example, by both parties' bank statements or a canceled gift check. Freddie Mac 5501.4
FHA
- Donors may be a family member, employer or labor union, close friend with a clearly defined and documented interest, charitable organization, or government agency or public entity with a homeownership assistance program. FHA 4000.1 II.A.4.d.iii(F)
- Cash on hand is not an acceptable donor source. The gift letter, signed and dated by donor and borrower, gives the donor's name, address, telephone number, relationship, the amount and a no-repayment statement. FHA 4000.1 II.A.4.d.iii(F)
- Transfer is shown by the donor's bank statement or canceled check plus evidence of deposit, or at settlement by electronic transfer or an official bank check. FHA 4000.1 II.A.4.d.iii(F)
VA
- The donor must not have any affiliation with the builder, developer, real estate agent or any other interested party to the transaction. VA Pamphlet 26-7, Chapter 4, Topic 4.d
- The gift letter must give the dollar amount, a no-repayment statement, and the donor's name, address, telephone number and relationship; the lender verifies transfer to the borrower or closing agent. VA Pamphlet 26-7, Chapter 4, Topic 4.d
USDA
- Gift funds may not come from any source with an interest in the sale (seller, builder, real estate agent); cash on hand is not an acceptable donor source. USDA HB-1-3555 Attachment 9-A
- The gift letter must name the donor, give the dollar amount and state that the funds need not be repaid; the lender verifies the funds reached the applicant's account or closing agent. USDA HB-1-3555 Attachment 9-A
Sources
- Fannie Mae Selling Guide, September 2, 2026 version: B3-4.3-04, Personal Gifts (p. 434, 435, 436)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 5501.4(a), Gift or grant funds (p. 5501-29, 5501-30, 5501-31, 5501-32)
- FHA Single Family Housing Policy Handbook 4000.1, August 12, 2026 version: II.A.4.d.iii(F), Gifts (Personal and Equity) (TOTAL) (p. 258, 259)
- VA Lender's Handbook (VA Pamphlet 26-7), August 12, 2026 version: Chapter 4, Topic 4.d, Gift Funds (PDF p. 94, 95)
- USDA HB-1-3555 Guaranteed Loan Program Handbook, March 2, 2026 version: Chapter 9, Attachment 9-A, Assets and Reserves: Gift Funds (p. 9-42)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.
