Gift Funds from a Family Business: New Conventional Rule for Florida Buyers
Freddie Mac Bulletin 2026-9, effective July 1, 2026, expands who can gift you conventional down payment funds — specifically allowing a business owned by a related person to serve as the donor, not just that person's personal account. If a parent, sibling, or other qualifying relative has offered to help fund your Florida purchase through their business, here's what changed and what your gift letter needs to show.
What actually changed
Per the Newrez Correspondent bulletin summarizing Freddie Mac Bulletin 2026-9, effective for mortgages with application dates on or after July 1, 2026, a business owned by a Related Person is now an eligible donor of gift funds. Previously, guidance focused on gifts coming directly from a related individual's personal funds; this update recognizes that family financial support often flows through a family business instead. The gift letter must now state the donor's ownership interest in the business in addition to the standard gift-letter requirements, and it must be signed by that related person individually — not just an authorized business signer.
The bulletin also clarifies an interested-party contribution question that comes up often in family transactions: gifts from a Related Person, their business, their trust, or their estate are exempt from interested-party contribution limits when that same related person is also the seller of the property — as long as there's no other interested-party affiliation in the transaction. That's a meaningful clarification for Florida buyers purchasing a home from a family member where the family also wants to help with funds to close.
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Schedule a Call With Joe No credit pull to beginLarge deposits: what's actually required now
The same bulletin clarifies large-deposit sourcing rules more broadly. Per the guidance, documentation of a large deposit is required only if the deposit occurred within 60 days of your Application Received Date, on or before your Note Date, and is reflected in your file's asset documentation. Deposits falling outside that window generally don't trigger the same sourcing requirement — a helpful clarification for Florida buyers who received family support well before formally applying. One exception: foreign asset accounts remain subject to sourcing requirements regardless of timing, per Freddie Mac Section 5501.1(f)(ii).
| Topic | What Freddie Mac Bulletin 2026-9 says |
|---|---|
| Gift donor eligibility | A business owned by a Related Person is now an eligible gift-fund donor, with ownership interest disclosed on the gift letter. |
| Interested-party contribution limits | Gifts from a Related Person, their business, trust, or estate are exempt from those limits when the same person is also the seller (absent other interested-party ties). |
| Large deposit sourcing | Required only for deposits within 60 days of Application Received Date and on/before Note Date, reflected in file documentation. |
| Foreign asset accounts | Always subject to sourcing requirements, regardless of deposit timing. |
How this plays out in a Florida family transaction
Assuming a Florida buyer purchasing a $400,000 home from a parent who also wants to gift a portion of the down payment through the family's LLC: this update means the gift letter can now properly document that business as the donor, disclosing the parent's ownership interest and carrying their personal signature — rather than needing to restructure the transaction to route funds through a personal account first. It also confirms that gift exempts from interested-party contribution limits in this scenario, since the related person is both donor and seller with no other interested-party role in the deal.
If you're also weighing whether an appraisal will even be required on your purchase, our guide on appraisal waivers, Value Acceptance, and ACE for Florida conventional buyers covers how that separate process works.
What this doesn't change
This update doesn't loosen who qualifies as a "Related Person" under Freddie Mac's existing family-relationship definitions, and it doesn't change minimum down payment, credit score, or debt-to-income requirements. Your gift letter still needs to meet all standard requirements — donor name, relationship, dollar amount, statement that no repayment is expected, and now, where applicable, the donor's business ownership disclosure. If your purchase also involves a condo, remember project-level approval is a separate underwriting question — see our Florida conventional condo guidelines guide for that process.
Frequently Asked Questions
Can a family member's business gift me down payment funds in Florida?
Yes, as of Freddie Mac Bulletin 2026-9, effective July 1, 2026, a business owned by a Related Person is an eligible gift-fund donor, provided the gift letter discloses the donor's ownership interest and is signed by that individual.
Does this change how large deposits are documented?
Yes — sourcing documentation is now required only for deposits within 60 days of your Application Received Date and on or before your Note Date, reflected in your file. Foreign asset accounts remain subject to sourcing regardless of timing.
If my family member is also the seller, does their gift count against contribution limits?
Gifts from a Related Person, their business, trust, or estate are exempt from interested-party contribution limits when that person is also the seller, as long as there's no other interested-party affiliation in the transaction.
Do I still need a signed gift letter?
Yes. Standard gift letter requirements still apply — donor name, relationship, amount, and a statement that repayment isn't expected — with the added ownership-interest disclosure when the donor is a business.
Have a family member offering to help fund your Florida purchase through their business? Reach out to Joe Pistone & Team and we'll structure your gift letter and documentation correctly from the start, and for today's pricing, just ask Joe.