If you’re applying for a home loan and planning to use a gift, it’s important to understand the rules. This post covers gift funds for mortgages 2025—who can give them, what loan programs allow, and what paperwork is needed.

Each loan type has its own guidelines. The FHA, VA, USDA, and conventional programs (Fannie Mae and Freddie Mac) all have specific rules about who can provide gift funds and how they must be documented.

Who Can Provide Gift Funds for Mortgages 2025?

The short answer: it depends on the loan program. Let’s break it down.

Fannie Mae Guidelines

Fannie Mae allows gifts from:

  • Relatives (by blood, marriage, adoption, or legal guardianship)
  • Fiancé, fiancée, or domestic partner
  • Godparents or others with a documented family-like relationship
  • Wedding gifts from unrelated individuals (must be supported with documentation)

The donor cannot be involved in the transaction—like a builder, developer, or agent.

Freddie Mac Guidelines

Freddie Mac also allows gifts from:

  • Relatives, guardians, fiancé, fiancée, or domestic partners
  • Individuals with a long-term, close, family-like relationship
  • Gifts related to weddings or graduations (must be deposited within 90 days)

Freddie Mac does not allow gift funds for investment properties. For second homes with high loan-to-value, the borrower must also contribute 5% of their own funds.

FHA Gift Fund Rules

FHA is a bit more flexible, but still requires proper documentation. Acceptable donors include:

  • Parents, children, grandparents, siblings, in-laws
  • Fiancé, fiancée, or domestic partner
  • Cousins and close friends with a clearly documented relationship
  • Employers, labor unions, government agencies, and charitable groups

FHA also permits gifts from trusts or estates if the donor meets all eligibility criteria.

VA and USDA Gift Fund Guidelines

Both VA and USDA loans allow gift funds from:

  • Family members
  • Fiancé or domestic partner
  • Close friends, if a clear and documented relationship exists
  • Government or nonprofit organizations

As with other loan types, donors cannot be involved in the home sale. Builders, real estate agents, and sellers are not permitted sources of gift funds.

Gift Funds Summary Table

This quick-reference table shows acceptable gift sources for each loan type:

(Refer to attached image: Source of Gift Quick Reference Table)

Documentation You’ll Need

To use gift funds for mortgages 2025, you’ll need to provide:

  • A signed gift letter from both the donor and the borrower
  • Proof of transfer (bank statement, wire confirmation, etc.)
  • Documentation of the relationship if the donor is a friend or non-relative
  • Event support documents (wedding invite, diploma, etc.) when needed

Final Thoughts

Using gift funds can make homeownership more achievable, especially in today’s market. But different loan programs have very specific rules. That’s why working with an experienced mortgage professional is so important.

Have questions about using gift funds for mortgages 2025? I’d be happy to review your scenario and help you move forward with confidence.

Your best interest is my principal concern.

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