Can gift funds come from the employer?

Gift Funds may be provided by the Borrower’s employer or labor union.  Any gift of the Borrower’s required minimum investment must also comply with the additional requirements for Source Requirements of Borrower’s Minimum Required Investment (MRI) found in Handbook 4000.1 II.A.4.d.ii.(B). 

The Mortgagee must obtain a gift letter signed and dated by the donor and Borrower that includes the following: 
• the donor’s name, address, and telephone number; 
• the donor’s relationship to the Borrower; 
• the dollar amount of the gift; and 
• a statement that no repayment is required.  

The receipt of the gift funds must be documented in accordance with Handbook 4000.1 II.A.4.d.iii(F) or II.A.5.c.iii(F). 

A salary advance cannot be considered as assets to close.    

For additional information see Handbook 4000.1 II.A.4.d.iii(F); II.A.5.c.iii(F); II.A.4.d.iii(M);  II.A.5.c.iii(M) 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-04251