One of the most enjoyed benefits of the FHA, though, is that the down payment for an FHA mortgage can be 100% gift funds. Verification of the source of gift money is not required to benefit from this particular aspect of the legislation. However, it is necessary that the gift funds be deposited in the borrower”s bank or savings account, or in an escrow account, prior to underwriting approval. 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. Additionally, proof of initial deposit is required.