can down payment for a conventional loan be gifted?

Asked by Jared, Phoenix, AZ Tue Apr 15, 2008

what are the restrictions for a family member who is wanting to gift me the entire 10% down for my conventional home loan?

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Michael Hump…, , Winchester, VA
Tue Aug 25, 2009
They can gift you 10% but you still need to come up with 5%. Anything less then a 20% gift then you have to have 5% of your own funds in the transaction. If you go FHA the downpayment can be gifted by a family member and you don't have to have any money in the transaction
1 vote
Kyle, , Scottsdale, AZ
Wed Aug 26, 2009

Jamie, you may want to brush up on lending guidelines in 2009 or let a mortgage officer answer these type of questions, mortgage rules change almost hourly these days....pretty sure your mortgage advice from the 90's is a bit antiquated at this point....

Not being rude, just kind of obvious and dont want people to get false ideas about what is available..
0 votes
Roswell Moore…, Mortgage Broker Or Lender, Scottsdale, AZ
Sun Aug 23, 2009
Hi Jared,

A lot of things have changed in regards to lending. Although gift funds are allowed to be used for a down payment, they are only allowed AFTER YOU meet the minimum down payment requirements.

For instance, if you qualify to put 5% down on a Conventional loan (there is a 5% down Conventional loan program) you can add an additional 5% down from a gift. You will not be approved for a Conventional loan if your entire down payment is from a gift.

There is a new loan program from the State of AZ that lets you buy a home using only 1% of your own funds for a down payment.

This loan program requires 3% down, BUT you can be gifted 2% of that down payment. It's called the Your Way Home AZ loan programs http://( This program will "give" you a 22% "silent" second mortgage, at a 0% interest rate & no payments due, AND this second mortgage loan is forgiven after you live in the home for a certain length of time, depending on the loan amount.

I hope that helps...

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
(480) 422-5095 Direct
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0 votes
Jamie Geiger, , Mesa, AZ
Wed Apr 16, 2008
Hi Jared,
Yes the down payment can be gifted- when I purchased my first home in the early 90's my parents gifted money to us to help in the purchase. Your lender can guide you in the proper documentation that would be needed.
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James Wehner, Agent, Scottsdale, AZ
Wed Apr 16, 2008
You can be gifted your 10% down payment, but their may be some tax implications for either you or the person gifting the money, so you may want to consult your tax accountant.
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