Can gift funds be provided from a friend or other unrelated party?

Gifts refer to the contributions of cash or equity with no expectation of repayment.  Gifts may be provided by:  
• the Borrower’s Family Member; 
• the Borrower’s employer or labor union; 
• a close friend with a clearly defined and documented interest in the Borrower; 
• a charitable organization; 
• a governmental agency or public Entity that has a program providing homeownership assistance to low or moderate income families or first-time homebuyers.   

For additional information see Handbook 4000.1 II.A.4.d.iii(F) or II.A.5.c.iii(F) available at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04239