Can I use gift money for a down payment in Wisconsin?
Rob Miller explains exactly how gift funds work for Wisconsin home purchases — who can gift, what documentation is required, and which loan types allow it.
Rob Miller, Branch Manager at MadCity Home Loans, answers a question we get constantly from first-generation homebuyers and families helping adult children buy their first home.
Can I use gift money for a down payment in Wisconsin?
Yes — and it's extremely common. Many of my buyers in Madison get help from parents, grandparents, or other family members. Here's how it works by loan type:
FHA Loans
100% of your down payment and closing costs can be a gift from a family member, fiancé, close friend, employer, or charitable organization. FHA is the most generous loan type for gift funds.
Conventional Loans
Gift funds are allowed but with some restrictions. If you're putting less than 20% down, some of the funds must come from your own savings. With 20% or more down, the entire amount can be a gift. The donor must be a relative, domestic partner, or fiancé — not a stranger or business associate.
VA Loans
Gift funds are fully allowed for VA loans, with no minimum borrower contribution required.
What Documentation Is Required?
Every gift requires a gift letter signed by the donor that states:
- The dollar amount of the gift
- The donor's relationship to the buyer
- The property address
- A statement that the funds are a gift and do not need to be repaid
We'll also need to source the gift — meaning we'll document where the money came from (typically 2 months of the donor's bank statements showing the funds).
Related Guide: See all down payment options available in Wisconsin in our Down Payment Assistance Guide.