Using gift money for a down payment in Florida: who can give it, the gift letter your lender needs, and how FHA and conventional rules differ for a condo
October 31, 2026 · Zach Curtis, REALTOR®, Realty Hub
Short answer: yes, a gift can cover your down payment and closing costs on FHA and conventional loans, but it has to come from an acceptable donor. You'll need a signed gift letter and a paper trail for the money. Gifts from the seller's side, such as the builder, developer or an agent, are treated differently. And under Fannie Mae's rules, gifts aren't allowed on an investment property.
Who can give you the money
| Conventional (Fannie Mae) | FHA | |
|---|---|---|
| Relatives | Yes: a spouse or anyone related by blood, marriage, adoption or legal guardianship | Yes |
| Partner or fiancé(e) | Yes: a domestic partner (or their relative) or someone engaged to marry you | Ask your lender |
| Friend or mentor | Yes, with a long-standing mentorship or similar close relationship | A close friend with a clearly defined, documented interest in you |
| Employer or labor union | Not covered by the personal gift rules; ask your lender | Yes |
| Charity or government program | Handled as grants under a separate topic | Yes, including government homeownership programs |
| Builder, developer, agent, or other interested party | No | Treated as an interested party contribution, not a gift |
Sources: Fannie Mae Selling Guide B3-4.3-04, Personal Gifts; HUD Handbook 4000.1, Update 18.
Fannie Mae allows gifts on a principal residence or a second home, but not on an investment property. HUD adds that cash on hand isn't an acceptable source for the donor's money, so the gift needs to come from an account.
Do you need to put in any of your own money?
Under Fannie Mae's rules:
- On a one-unit principal residence, such as a condo you'll live in, the whole down payment and closing costs can come from a gift. That applies even above 80% loan-to-value.
- On a second home with more than 80% loan-to-value, you must put in 5% from your own funds first.
- HomeReady has its own contribution rules.
HUD's handbook lets gifts count toward FHA's minimum required investment (3.5% for most buyers) as long as they also meet HUD's source requirements for that investment (HUD Handbook 4000.1; HUD: FHA loans). For how much you'll need, see condo down payments in Florida.
The gift letter
Both programs require a gift letter. It must include:
- The donor's name, address and phone number.
- The donor's relationship to you.
- The dollar amount of the gift. Fannie Mae allows the actual or the maximum amount.
- A statement that no repayment is expected or required.
HUD requires the letter to be signed and dated by both the donor and you. Fannie Mae requires the donor's signature. Ask your lender whether it has its own form.
Moving the money: the paper trail
The lender has to verify the gift. Acceptable evidence includes:
- the donor's bank statement or canceled check showing the withdrawal, plus your deposit
- an electronic transfer from the donor's account to yours
- a check or wire from the donor straight to the closing agent
For FHA gifts verified at settlement, HUD lists an electronic transfer from the donor's account, or a certified, cashier's or other official bank check. Practical tips:
- Have the donor send the money from their own account, not as cash.
- Tell your lender about the gift before the money moves, so it can be documented the right way.
- Don't move money between your own accounts without keeping statements.
Gift of equity
If you're buying from a relative, part of their equity can count as a gift toward your purchase. For FHA, only relatives may give a gift of equity, and the same letter details apply. Fannie Mae covers equity gifts in a separate topic and doesn't let them be used for reserves.
Gifts plus other help
Gifts can sit alongside assistance programs. See Broward down payment assistance and Hometown Heroes. Seller credits can cover closing costs but not your down payment; see seller concessions. For lower credit scores, see buying with lower credit, and get your letter in order with pre-approval. A large gift may have tax reporting implications for the donor, so they should ask a tax professional.
Browse Hallandale Beach, Hollywood, Dania Beach, West Park or Aventura, then start at Ready to buy.
Zach Curtis, Realtor, Realty Hub, license SL3664129. Equal Housing Opportunity. General information, not legal, tax, insurance or lending advice. Your lender applies the gift rules for your loan.
Questions? Ask Zach
I'm Zach Curtis, a REALTOR® with Realty Hub in Hallandale Beach. I help renters and buyers in Hallandale Beach, Hollywood, Aventura and nearby. Zach replies personally within 15 minutes, 8 AM to 9 PM ET, 7 days. Outside those hours, by 9 AM.
Questions
Can I use gift money for a down payment in Florida?
Yes. FHA and Fannie Mae conventional loans allow gifts from acceptable donors for a principal residence; Fannie Mae also allows them for a second home but not for an investment property.
Who can give gift money for an FHA loan?
HUD lists a relative, your employer or labor union, a close friend with a clearly defined and documented interest in you, a charitable organization, or a governmental agency or public entity with a homeownership program.
What does a gift letter need to say?
The donor's name, address, phone number and relationship to you, the dollar amount, and a statement that no repayment is expected. HUD requires it signed and dated by the donor and the borrower.
Can my whole down payment be a gift on a conventional loan?
For a one-unit principal residence, Fannie Mae doesn't require a minimum contribution from your own funds. For a second home above 80% LTV, you must contribute 5% yourself.
Can the seller give me a gift?
A seller who is an acceptable donor and not tied to any other interested party can, under Fannie Mae rules. Money from builders, developers or agents is treated as an interested party contribution, not a gift.
Sources
Published October 31, 2026 by Zach Curtis, REALTOR®, Realty Hub, license SL3664129. General information for South Florida, not legal, tax, insurance or lending advice. Laws, programs and prices change; check the official sources above, and ask a Florida attorney, CPA, insurance agent or lender about your situation. Listing numbers are asking prices and rents from BeachesMLS on the date shown. Equal Housing Opportunity. Zach Curtis and Realty Hub follow federal, Florida and Broward County fair housing law. Every listing is open to everyone. We never steer anyone by race, color, religion, sex, national origin, disability, familial status, age, sexual orientation, gender identity, or any other protected class.