Minimum Borrower Contribution Requirement from Borrower’s Own Funds

If the borrower receives a gift from a relative or domestic partner who has lived with the borrower for the last 12 months, or from a fiancé or fiancée, the gift is considered the borrower’s own funds and may be used to satisfy the minimum borrower contribution requirement as long as both individuals will use the home being purchased as their

principal residence.

Documentation Requirements

Gifts must be evidenced by a letter signed by the donor, called a gift letter. The gift letter must:

• specify the dollar amount of the gift;

• specify the date the funds were transferred;

• include the donor’s statement that no repayment is expected; and

• indicate the donor’s name, address, telephone number, and relationship to the borrower.

When a gift from a relative or domestic partner is being pooled with the borrower’s funds to

make up the required minimum cash down payment, the following items must also be included:

 • A certification from the donor stating that he or she has lived with the borrower for the past 12 months and will continue to do so in the new residence.

• Documents that demonstrate a history of borrower and donor shared residency. The donor’s address must be the same as the borrower’s address. Examples include but are not limited to a copy of a driver’s license, a bill, or a bank statement.

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