Minimum borrower contribution
A conventional buyer does not always need their own cash for the down payment.
Fannie one-unit primary
For an eligible one-unit principal residence, Fannie does not require a minimum contribution from the borrower's own funds solely because gift funds are being used—even above 80% LTV.
Fannie 2–4 units and second homes
Above 80% LTV/CLTV/HCLTV, Fannie generally requires a 5% contribution from the borrower's own funds for 2–4 unit principal residences and second homes when gifts are involved, subject to product-specific exceptions.
Freddie primary residence
Freddie's current standard framework does not require a minimum borrower personal-funds contribution for a 1–4 unit primary residence solely because gifts are used. For a second home above 80% LTV/TLTV/HTLTV, Freddie requires 5% from borrower personal funds when gift funds are used.
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.