Gift funds for a San Diego down payment
Quick answer: On a conventional loan (Fannie Mae B3-4.3-04, updated 02/04/2026), a personal gift from an acceptable donor can fund down payment, closing costs, or reserves on a primary or second home. Not on investment property. Acceptable donors are a relative (spouse, child, other dependent, or related by blood, marriage, adoption, or legal guardianship) or a non-relative with a familial relationship (domestic partner or their relative, fiancé(e), former relative, long-standing familial-like or mentorship relationship). The donor may not be affiliated with the builder, developer, real estate agent, or another interested party. A seller who is also an acceptable donor is allowed. The gift letter needs the dollar amount (actual or max), a statement that no repayment is expected, and the donor name, address, phone, and relationship. You also need evidence of transfer (withdrawal, wire, or canceled check) and the borrower's deposit confirmation. At 80% LTV or lower, all funds can be gift on a 1-4 unit primary or second home. Above 80% LTV, a one-unit primary can still be all gift; a two-to-four-unit primary or second home needs 5% from your own funds, then gift can supplement. FHA also commonly allows family gifts on a primary. See FHA loan San Diego. Source: Fannie Mae B3-4.3-04 Personal Gifts.
Parents and relatives gift down payment money on San Diego purchases every week. The gift is fine when the donor fits the guideline, the letter is complete, and the money trail is clean. A messy gift letter or a wire with no paper trail slows underwriting. We fix that before you write.
What the gift letter and transfer need
- Gift letter: dollar amount (actual or maximum), statement that no repayment is expected, donor name, address, phone, and relationship to you.
- Evidence of transfer: donor withdrawal, wire confirmation, or canceled check.
- Your deposit: bank statement or escrow receipt showing the gift landed in your account or at escrow.
- Donor cannot be tied to the builder, developer, agent, or another interested party (seller who is also an acceptable donor is the exception Fannie calls out).
How much can be gift
At 80% LTV or lower, gift can cover all funds on a 1-4 unit primary or second home. Above 80% LTV, a one-unit primary can still be all gift. A two-to-four-unit primary or a second home needs 5% from your own funds first, then gift can fill the rest. Investment property: personal gift funds are not allowed under that same Fannie section.
FHA and the San Diego limit line
FHA commonly allows family gifts on a primary residence. We do not invent HUD handbook section numbers on this page. Details live on your file and on FHA loan San Diego. Conventional path: conventional loan San Diego. Cash piece: cash to close breakdown. First-time paths: first-time down payment paths.
When loan amount matters, the 2026 San Diego County 1-unit high-cost conforming limit is $1,104,000. Jumbo is generally above that. VA full entitlement is not capped the same way. See loan limits. Start at get pre-approved San Diego. Company NMLS 2394495. Amir Nurani NMLS 197458. Call (619) 366-9494.
Frequently asked questions
Under Fannie Mae B3-4.3-04 (updated 02/04/2026), a relative, or a non-relative with a familial relationship such as a domestic partner, fiancé(e), former relative, or long-standing familial-like or mentorship relationship. The donor may not be affiliated with the builder, developer, real estate agent, or another interested party, except a seller who is also an acceptable donor.
Dollar amount (actual or maximum), a statement that no repayment is expected, and the donor name, address, phone, and relationship. You also need evidence of transfer and the borrower's deposit confirmation.
At 80% LTV or lower, yes for a 1-4 unit primary or second home. Above 80% LTV, a one-unit primary can still be all gift. A two-to-four-unit primary or a second home needs 5% from your own funds, then gift can supplement. Investment property cannot use personal gift funds.
FHA commonly allows family gifts on a primary residence. We keep the FHA rules on your file, not invented handbook cites on this page. Start at FHA loan San Diego and we shop both programs.
Sources: Fannie Mae Selling Guide B3-4.3-04 Personal Gifts (updated 02/04/2026), selling-guide.fanniemae.com/sel/b3-4.3-04/personal-gifts. FHFA conforming loan limit values for 2026. FHA gift rules confirmed on the file; overview at /fha-loan-san-diego.
Have gift money coming in?
Send the donor relationship, the amount, and your purchase price range. We line up the gift letter and the money trail before underwriting asks.
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