FHA vs Conventional
The FHA path and the conventional path treat gift funds differently.
Texana’s own FHA materials describe a fuller gift-funds path than Fannie Mae’s conventional rules allow in every case, which is why the two should not be assumed to work the same way.
How Texana describes its FHA gift path
Texana’s public FHA page states that 100% of the down payment can come from gift funds from a family member, employer, or approved charity, with a gift letter confirming the funds are a gift and not a loan, alongside 3.5% down with 580+ credit as described on-site.
What Fannie Mae’s conventional rules allow
Fannie Mae Selling Guide B3-4.3-04 allows personal gift funds for a principal residence or second home, but not an investment property, defines who may be an acceptable donor, and requires a signed gift letter documenting the amount, the donor’s identity and relationship, and that no repayment is expected. On certain 2–4 unit primary residences or second homes above 80% LTV/CLTV/HCLTV, it requires a minimum contribution from the borrower’s own funds.
Documentation borrowers should expect
Across both programs, expect a signed gift letter and proof the funds actually moved — statements, transfer records, or a cashier’s check trail. A large, undocumented deposit close to closing often creates conditions, so gathering the gift letter and transfer records early avoids delay.
Gift funds are not the same as seller concessions
Texana’s own FHA gift-funds guide separates the two: gift funds may help with the borrower’s required investment when documented, while seller concessions are interested-party contributions that generally apply to allowable closing costs and prepaid items within program limits.
