Mortgage Navigator • Conventional • Assets & Reserves
Gift funds & reserves
A personal gift can sometimes cover far more than the down payment—but a gift of equity is not the same thing.
Fannie personal gifts
On eligible principal-residence and second-home transactions, gift funds from acceptable donors may be used for down payment, closing costs and financial reserves, subject to minimum borrower-contribution rules.
Investment property
Fannie does not allow personal gift funds on an investment-property mortgage.
Gift of equity
Fannie specifically states that a gift of equity may not be used for financial reserves.
Fannie vs. Freddie: Freddie also permits gifts subject to donor, occupancy, transfer and minimum-contribution rules. For a second home above 80% LTV, Freddie requires at least 5% down from borrower personal funds before gift funds can supplement the transaction.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Asset eligibility depends on ownership, accessibility, documentation and how the funds are being used.