Yes. Even with zero down, gift money can cover closing costs, prepaid items, earnest money, and sometimes the funding fee — when the donor, gift letter, and paper trail are underwriting-ready.
Gift money lowers cash to close — if the source and trail are clean.
Getting the gift file right the first time avoids last-minute underwriting delays.
If money must be paid back, it is not a gift — and it may count as debt.
Zero down does not mean zero cash — gifts often fill the gap.
| Cash need | Gift typically allowed? | Notes |
|---|---|---|
| Closing costs / prepaids | Yes | Most common use on zero-down purchases |
| Earnest money | Yes | Document before or after deposit |
| Funding fee (cash) | Often yes | Or finance / claim exemption |
| Optional down payment | Yes | Same gift letter standards |
Related guides to help you compare options and move toward pre-approval.
How 100% financing works and what cash you still need at closing.
Rates, first vs subsequent use, and how gifts can help.
Service eligibility, COE, residual income, and occupancy.
Program details and payment tools with Ryan & Steve.
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Ryan & Steve will tell you exactly what the gift letter and transfer docs need — then get you pre-approved with cash-to-close clarity.