Using gift funds for a conventional down payment: donor rules, letters, and seasoning. Guidance from The 2 Mortgage Guys at Luminate Bank, nationwide.
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Conventional Loans
Gift Funds
Yes — family gift funds are commonly used for conventional down payments and closing costs. The key is a proper gift letter, proof the donor can give the money, and a clear paper trail into your account.
Gifts can cover most or all of your down payment when documentation meets underwriting guidelines.
A clean gift file prevents last-minute conditions that delay closing.
A little prep keeps the gift from becoming a closing-day headache.
Follow this sequence so underwriting can clear the gift condition the first time.
Step
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Send us the donor relationship and amount — we will tell you exactly what paperwork underwriting will need before you go under contract.