Gift Funds for Jumbo Loans — California
Can you use gift funds for a jumbo loan down payment?
Yes — with conditions. Gift funds are allowed on some jumbo loan scenarios but restricted on others.
When gift funds are allowed
Gift funds from an eligible donor (typically an immediate family member) are permitted on jumbo loans for primary residence purchases with LTV at or below 80%. The gift can be used toward the down payment and/or closing costs, following standard documentation requirements.
When gift funds are NOT allowed
- LTV above 80%: Gift funds are not permitted when putting less than 20% down — all funds must come from your own verified assets
- Investment properties: Gift funds are never allowed on investment property transactions
- First-time buyers, high loan amounts: For first-time buyers in California with loan amounts above $1M, gift funds are not permitted
- Gift of equity from the seller: Not allowed — gifts must come from a related party, not the seller
Who can be a gift donor?
Gift donors must be related to the borrower — typically immediate family including parents, siblings, children, grandparents, spouses, and domestic partners.
Documentation required for gift funds
- A signed gift letter confirming no expectation of repayment
- Documentation showing transfer of funds from donor to borrower
- Bank statements for both donor and borrower confirming source and receipt
If you’re planning to use a family gift for your jumbo down payment, plan for 20% or more down — that’s when gift funds are most broadly available.
Serving California homebuyers and investors — Orange County, Los Angeles, San Diego, the Inland Empire, and communities throughout Southern California including Irvine, Huntington Beach, Anaheim, Fullerton, Garden Grove, and Santa Ana.