Down Payment Sources and Gift Rules

Two months of bank statements for every account you'll use is the standard document request. Underwriting looks for two things: enough funds to cover down payment, closing costs, and reserves; and no unusual deposits that aren't payroll.

'Unusual' means anything more than roughly half your monthly gross income that isn't payroll. Selling something on Facebook Marketplace for $4,000 the month before closing is an unusual deposit. So is a Venmo transfer from a friend that isn't a gift.

The gift letter is a one-page document with the donor's name, relationship, gift amount, address of the property, and a statement that no repayment is expected. We provide the template.

The paper trail is what most delays hinge on. The cleanest version: donor writes a check or wires funds directly to escrow at closing, and provides a bank statement showing the funds leaving the donor's account. That's it. Cash gifts, gifts run through Venmo without documentation, or gifts deposited by the borrower and then moved between accounts create hours of extra work.

DPA programs - state, city, and nonprofit - can cover part or all of the down payment for eligible buyers. Most are structured as second liens (repaid later or forgivable after 5–10 years of occupancy) or as outright grants.

The trade-off is complexity: DPA adds underwriting time, income limits, and often first-time-buyer restrictions. We have a dedicated guide to the currently-active programs.

Quick Mortgage also offers a fully forgivable DPA grant - money toward your down payment that is never repaid once the program terms are met. Most other lenders do not offer this grant, and many are not even aware it exists. Eligibility, income limits, and program guidelines apply, and approval is always subject to underwriting - ask us to check whether you qualify before you assume you need to keep saving.