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The short answer
A gift from family in Nigeria can fund a US down payment, but the lender must be able to trace it: for loans sold to Fannie Mae, that means a signed gift letter stating the amount, that no repayment is expected and the donor's relationship, plus evidence of the transfer from the donor's account to yours or to the closing agent. Funds from abroad must be converted into dollars and held in a US-regulated institution, verified before closing, and any foreign-language documents need a full English translation.
Your parents in Port Harcourt want to help with the deposit on a house in Texas. It is a generous and common arrangement, and it is where many mortgage applications slow down. The lender's underwriter does not doubt your family; it needs paper that proves the money is a gift, not a loan, and shows exactly how it travelled. Plan the paper before the money moves.
What the lender needs: the gift rules
Lenders that sell conventional loans to Fannie Mae follow its Selling Guide. Its personal gifts section (dated 4 February 2026) sets out who can give and what must be documented:
- Acceptable donors include relatives by blood, marriage, adoption or legal guardianship, a domestic partner, a fiancé or fiancée, and someone with a long-standing familial or mentorship relationship. The donor cannot be an interested party such as the builder, developer or real estate agent.
- The gift letter must be signed by the donor and state the actual or maximum gift amount, that no repayment is expected, and the donor's name, address, telephone number and relationship to you.
- The transfer must be verified: evidence that the funds were in the donor's account or were transferred to yours, such as evidence of an electronic transfer from the donor's account to yours or to the closing agent.
FHA, VA and other loan programmes set their own rules. Ask your loan officer which guide applies to your loan and get its checklist in writing.
The extra rules when money comes from abroad
Fannie Mae's foreign assets section (dated 4 May 2022) adds three points that matter for a Nigerian gift:
- Funds from assets outside the US must be exchanged into US dollars, with documented evidence of the exchange.
- The dollars must be held in a US or state-regulated financial institution.
- They must be verified in dollars before the loan closes. Any document not in English needs a complete and accurate translation.
In practice that means the money should land in your US account, or with the closing agent, well before closing, with a clear trail from your parent's Nigerian account. Large deposits are reviewed separately, so a lump sum that suddenly appears without the gift letter and transfer records will be questioned. See what US banks ask about wires from Nigeria.
Sending it from Nigeria
The donor wires dollars from a domiciliary account in their own name, which gives the lender the "donor's account to borrower's account" evidence it wants. Under the 2026 FX Manual, Form A is not required for outward remittances from self-funded domiciliary accounts, and legal commentary describes direct transfers of up to US$10,000 a day (Mondaq/Pavestones, 24 June 2026). A larger gift may therefore arrive in several wires. Ask the donor's bank for a debit advice or Swift copy for each, showing the donor's name and account.
Wiring straight to the closing agent
Fannie Mae also accepts gift funds sent directly to the closing agent: if the gift is not transferred before settlement, the lender documents that the donor gave the closing agent the money by electronic transfer or an official cheque. From Nigeria that means a wire to the title or escrow company. Confirm its wiring instructions by phoning a number you found independently, never one from an email, because changed instructions are a known fraud.
Worked example
Example only: your mother gives US$40,000 in four transfers of $10,000. Each loses $20 to an intermediary and $15 to your bank's incoming fee, so $9,965 arrives each time and $39,860 in total. The gift letter can state the maximum amount ($40,000), but the underwriter will match the four credits on your statement to the four debit advices; give the loan officer the arithmetic so the $140 difference is not a query. Intermediary charges are explained in intermediary banks on USD wires.
Reporting on your side
A gift is not income. But if you are a US person and receive more than $100,000 in a tax year from a nonresident alien individual, counting gifts from related people together, you file Form 3520 as an information return; the IRS says foreign gifts are not subject to income tax (IRS, Gifts from foreign person, updated April 2026). See Form 3520 for gifts from family in Nigeria.
What to check first
- Ask the loan officer which guide applies and for its gift letter template.
- Have the donor sign the letter before sending, with the amount, relationship and no-repayment statement.
- Send the money early, from an account in the donor's own name.
- Collect each debit advice, your bank statements showing each credit, and translations of anything not in English.
- Keep every record until the loan closes and with your tax papers after.
Where Pryme fits
Any Pryme customer can generate a regular or verifiable statement or receipt through VerifyDoc.ai, and anyone can check that a verifiable one is genuine and unaltered, which can help when an underwriter asks for proof of where money came from. Outside Nigeria, Pryme's services are provided through regulated partners.
Questions people ask
Can I use money from my parents in Nigeria for a US down payment?
Yes, as a documented gift. The lender needs a signed gift letter and evidence of the transfer from the donor's account.
What should a gift letter for a mortgage include?
For Fannie Mae loans: donor signature, gift amount, a no-repayment statement, and the donor's name, address, phone and relationship to you.
Does the gift need to be in a US account before closing?
Fannie Mae requires foreign funds to be converted to dollars, held in a US or state-regulated institution and verified before closing.
Do I pay tax on a gift from Nigeria for my house?
No income tax on a gift, per the IRS. Over $100,000 a year from nonresidents, you file Form 3520 as an information return.
Sources
- Fannie Mae Selling Guide: B3-4.3-04, Personal gifts (4 Feb 2026) · accessed Oct 2026
- Fannie Mae Selling Guide: B3-4.2-05, Foreign assets (4 May 2022) · accessed Oct 2026
- IRS: Gifts from foreign person · accessed Oct 2026
- Mondaq (Pavestones): The CBN Foreign Exchange Manual 2026, 24 Jun 2026 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.