The down payment can be 100% gift funds. This is one of the key benefits to the FHA program.
Verification of the source of gift money is required. Some underwriters are more strict than others but the overall rule of thumb with this one is to make sure you’ve get every bread crumb accounted for.
AGAIN, verification of the gift money source is required.
Gift donors are restricted primarily to a relative of the borrower. They can also be certain organizations, such as a labor union or charitable organization. Contact your local branch for complete information.