Gift Donors
• Eligible: Borrower’s relative, spouse, domestic partner, or close friend with a clearly defined
and documented interest in the borrower. Borrower’s employer or labor union. A charitable
organization that does not replenish available gift funds with seller contributions. A governmental
agency or public entity that has a program to provide homeownership assistance to low- and
moderate-income families or first-time homebuyers,
• Ineligible: Any person or entity with an interest in the sale of the property, such as the seller, real
estate agent or broker, builder, or any entity associated with them.
“Seller-funded” Down Payment Assistance (DPA)
• No purchase loans with “seller funded” DPA’s of any kind.
AUS-underwritten loans
• Gift deposited prior to closing
- A gift letter and full documentation of the gift transfer is required, including:
i. evidence of donor’s account ownership and ability to give the gift,
ii. copy of donor’s cancelled check or bank-validated withdrawal slip, and
iii. Evidence of deposit into borrower’s account.
- Donor’s cash-on-hand is not an acceptable source.
- Gift letter must contain donor’s name, address, phone, and relationship to borrower; match the
exact amount of gift, state that gift is not repayable, and be signed by donor and borrower.
- Gifts deposited prior to closing and documented in this manner may be included in the
borrower’s account balance when submitting to TOTAL, but should be identified separately as gift
funds on the MCAW and 1003.
- Excess gift funds may be used as cash reserves (1- and 2-unit properties only).
• Gift received at closing
- Full gift letter required.
- Gift must be submitted to TOTAL as “gift funds” and not included in borrower’s account balance.
• Excess gift funds may NOT be used as cash reserves.

- By check: Copy of cashier’s check or other bank check purchased by donor, and evidence
that funds used to purchase check were withdrawn from donor’s own account. Donor’s personal
check or cash-on-hand is not acceptable. NOTE: To avoid funding delays, copies of these
documents must be provided and cleared prior to docs.
- By wire: Copy of incoming wire evidencing deposit into settlement agent’s account on or before
the day of closing. to validate relationship between the borrower and the donor by a third party service. If unable to validate
by this service, then legal documents will be required to validate the relationship.