Gift funds are not just for FHA. Conventional loans also let family help with your down payment — with a few important differences. Here is how it works in Florida for 2026.
Can the whole down payment be a gift?
On a primary residence, a conventional loan generally allows your entire down payment to come from an eligible gift — especially once you reach certain equity levels. On lower down payments, guidelines have historically been flexible for gifts from family. The key is a clean source and a proper paper trail.
Who can give a conventional gift?
Conventional rules limit donors to people with a defined relationship to you:
- Relatives by blood, marriage, adoption, or legal guardianship
- A domestic partner or fiancé(e)
Unlike FHA, conventional loans generally do not allow gifts from employers, friends, or unrelated parties. Anyone with a financial interest in the sale (seller, agent, builder) is off-limits.
The gift letter and paper trail
You will need a signed gift letter stating the amount, the donor, the relationship, and that no repayment is expected. Then underwriting traces the money: the donor’s withdrawal and your matching deposit, or a direct wire to closing. Amounts must line up.
Conventional vs. FHA gift rules
| Point | Conventional | FHA |
|---|---|---|
| Eligible donors | Family, partner, fiancé(e) | Family, employer, close friend, more |
| Gift letter | Required | Required |
| Paper trail | Required | Required |
For official conventional guidance, the standards trace back to FHFA-regulated agencies; consumer basics are covered by the CFPB.
Frequently asked questions
Can a friend gift my conventional down payment?
Generally no. Conventional gifts must come from family, a domestic partner, or a fiancé(e). FHA is more flexible on donors.
Do I need to document a conventional gift?
Yes — a signed gift letter plus a paper trail showing the donor’s funds moving to you or to closing.
Can gift funds cover closing costs too?
Often yes, in addition to the down payment, subject to program rules and your scenario.
Planning to use gift funds?
Joe Pistone & Team will make sure your gift is documented right the first time so it doesn’t delay your Florida closing. Take the eligibility quiz on our homepage or call us — and ask Joe for today’s number on your scenario.
Joe Pistone & Team · CrossCountry Mortgage · NMLS# 2087918 · Equal Housing Opportunity · Educational only — not a commitment to lend