The down payment for an FHA mortgage can be 100% gift funds. This is one of the key benefits to the FHA program.

Verification of the source of gift money is not required. However, it is necessary that the gift funds be deposited in the borrower's bank or savings account, or in an escrow account, prior to underwriting approval. Proof of deposit is required.

Gift donors are restricted primarily to a relative of the borrower but other well documented sources are reviewed by FHA on a case by case basis. They can also come from certain organizations, such as a labor union or charitable organization. Contact your local branch for complete information.