Gift Letter for Mortgage
Getting help with a down payment? Fill in the donor, the amount, and the property to get a ready-to-sign mortgage gift letter. Free, no sign-up, and nothing leaves your browser.
[Donor name]
September 29, 2026
Re: Gift Letter for [Borrower name(s)]
To Whom It May Concern,
I, [Donor name], am the parent of [Borrower name(s)]. I am making a gift of [$ gift amount], which has been given on [Date of gift], to be applied toward the purchase of the property at [Property address].
This is a gift. No repayment of any kind is expected or implied, either in cash or in future services, and the gift is not a loan.
The funds come from my own [Bank name] account ending in [####] and were not provided by any person or company with an interest in the sale of the property, including the seller, real estate agent, builder, or loan officer.
I certify that the information in this letter is true and accurate to the best of my knowledge.
Donor signature and date:
[Donor name]
Parent of the borrower
Borrower acknowledgment: I received this gift and understand it does not need to be repaid. ______________________________ Date: __________ [Borrower name(s)]
Nothing you type leaves your browser. Many lenders have their own gift letter form; use theirs if they require it.
The lender will ask for the donor's bank records too
Gift funds have to be traced from the donor's account to yours. A bank-connected report shows balances and deposit history straight from the bank, with no statements to redact or re-send.
See bank-connected proof of fundsWhy lenders need a gift letter
When a large deposit shows up in your account before closing, the lender needs to know it isn't a loan. A loan would add a payment that changes your debt-to-income ratio. A gift letter documents that the money is a true gift with no repayment expected, so it can count toward your down payment and closing costs.
What a mortgage gift letter includes
- The donor's name, address, phone, and relationship to the borrower
- The exact gift amount and the date it was or will be given
- The address of the property being bought
- A statement that no repayment is expected, in money or services
- Where the money comes from, with the account's last four digits
- Signatures from the donor and the borrower
Documenting the transfer
The letter is only half of it. Lenders also want to trace the money: typically the donor's bank statement showing the withdrawal, your statement showing the deposit, or a wire confirmation or cashier's check copy if the gift goes straight to closing.
Moving the money early, well before you apply, can also make it part of your own seasoned savings, but ask your loan officer first; rules differ by loan program. If you need to show your own funds, the proof of funds letter generator helps, and a letter of explanation covers any other large deposits the underwriter asks about.
Frequently asked questions
What is a gift letter for a mortgage?
A signed statement from someone giving you money toward a home purchase, usually for the down payment or closing costs. It confirms the amount, the donor’s relationship to you, and that the money is a gift you don’t have to repay, so the lender doesn’t count it as a loan.
What does a mortgage gift letter need to include?
The donor’s name, address, phone, and relationship to the borrower; the gift amount and date; the property address; a statement that no repayment is expected; where the funds came from; and signatures from the donor and usually the borrower.
Who can give gift money for a mortgage?
Most loan programs allow gifts from relatives, and many also allow a spouse, domestic partner, or fiancé(e). FHA loans also allow some employers, unions, and close friends. Anyone with an interest in the sale, like the seller or real estate agent, generally can’t. Rules vary by loan type.
What else will the lender ask for besides the letter?
Usually proof the money moved: the donor’s bank statement showing the withdrawal and your statement showing the deposit, or a wire or cashier’s check receipt. Lenders want to trace the funds from the donor to you or to closing.
Does gift money have tax implications?
The recipient generally doesn’t owe tax on a gift. A donor who gives one person more than the annual gift tax exclusion may need to file a gift tax return, though tax is rarely owed. Check current limits or ask a tax professional.
General information, not legal, tax, or lending advice. Gift rules vary by loan program and lender.