Use gift funds for down payment and closing costs on Home Possible® Freddie Mac CHOICERenovation® — gift letter rules, transfer trail, and how gifts differ from rehab escrow.
Gift Funds for Home Possible® Freddie Mac CHOICERenovation® | The 2 Mortgage Guys
Use gift funds for down payment and closing costs on Home Possible® Freddie Mac CHOICERenovation® — gift letter rules, transfer trail, and how gifts differ from rehab escrow.
Can I Use Gift Funds for the Down Payment and Closing Costs?
Gifts Cover Cash to Close — Not the Rehab Escrow
Gift Funds Snapshot
What Underwriters Need
Gifts vs Renovation Escrow
Keep Exploring
Frequently Asked Questions
Family Helping With Down Payment?
Yes. Home Possible® Freddie Mac CHOICERenovation® follows Home Possible gift-fund rules — eligible donors can cover down payment and closing costs with a proper gift letter and transfer trail, while renovation dollars stay in escrow for licensed contractors under Freddie Mac CHOICERenovation® draw rules.
Family help is one of the most common ways Home Possible buyers fund a 3% down payment and closing costs. Because this combo is a conventional Freddie Mac product, gift funds follow conventional documentation — gift letter, donor eligibility, and a clear paper trail from donor to borrower.
Gifts do not replace contractor bids or renovation escrow. Labor, materials, contingency (10% / 15% if utilities are off), draw admin fees, and up to six months of financed PITI still sit in the Freddie Mac CHOICERenovation® renovation budget released through five draws plus a final 1004D inspection.
Ryan and Steve prepare the gift package early so wire timing never collides with contractor bids, LPA Accept findings, or your 15-month completion clock.
Clear documentation keeps gift funds from delaying a fixer-upper closing.
Related Home Possible Freddie Mac CHOICERenovation® guides and cash-to-close resources.
Ryan & Steve prepare the gift letter package and keep donor wires aligned with your rehab escrow timeline at Luminate Bank.
Home Possible and Freddie Mac CHOICERenovation® are registered trademarks of Freddie Mac. All loans are subject to credit and property approval. Program guidelines, income limits, LTV limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Freddie Mac, Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.