Can I use gift money for my down payment?

Yes, and most loan programs allow it. Conventional, FHA, VA, and USDA loans all permit gift funds from a family member (parents, grandparents, siblings, spouse, fiancé, domestic partner, and on FHA also from close friends with a documented relationship). The paperwork involved is straightforward but specific: we need a signed gift letter stating the amount, the relationship, the source, and a statement that the money is a true gift with no expectation of repayment. We also need a paper trail — a copy of the donor's bank statement showing the funds left their account and your bank statement showing them arrive. On conventional loans for a primary residence, the entire down payment can come from a gift. On FHA, the entire down payment plus closing costs can be gifted. The one thing to avoid: do not deposit cash. Lenders cannot source cash, and undocumented deposits will get flagged in underwriting. Wire or write a check, and let me know in advance so we can document it cleanly the first time.