Personal gift funds
For many owner-occupied conventional loans, the entire down payment and closing costs can come from an eligible gift.
Fannie acceptable donors
Fannie permits gifts from relatives and certain non-relatives with a familial, domestic-partner, engagement, former-relative, long-standing familial-like or mentorship relationship. An interested party such as the builder, developer or agent cannot simply disguise a contribution as a personal gift.
What gifts can pay
On eligible principal residences and second homes, Fannie allows personal gifts for down payment, closing costs and financial reserves. Gifts are not permitted on investment-property mortgages.
Freddie
Freddie permits gift funds from a Related Person and certain related entities such as a business, trust or estate tied to that Related Person. Freddie also permits qualifying agency gifts or grants under an established program.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Program terms, AUS findings and lender overlays control. DPA program eligibility must also be verified with the program administrator.