Saving a down payment is the hardest part of buying for many Florida families. The good news: FHA lets your entire 3.5% down payment come from a gift — you don’t have to save it all yourself.
Who can give an FHA gift?
Gift funds must come from an acceptable source with no expectation of repayment. Acceptable donors include family members, a fiancé/fiancée or domestic partner, a close long-standing friend with a clear relationship, an employer, or a charitable organization. The donor cannot be anyone with an interest in the sale (like the seller or agent).
The gift letter
You’ll need a signed gift letter stating the amount, that it’s a gift with no repayment expected, the donor’s relationship to you, and the donor’s contact information. This is a standard, simple document your lender provides.
Documenting the money trail
Underwriters verify the gift. Expect to show the donor’s withdrawal and your matching deposit (a paper trail). Large unexplained deposits raise questions, so keep records and avoid cash.
Gifts can cover closing costs too
Gift funds aren’t limited to the down payment — they can also help with closing costs, reducing your total cash to close even further. Combined with seller credits and Florida down payment assistance, many buyers get in with very little of their own money.
Key takeaways
- Your full FHA down payment can be a gift.
- Donors must be family or a documented close relationship — not the seller.
- A signed gift letter and a clear paper trail are required.
- Gifts can also cover closing costs.