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Generate a lender-ready gift letter for your mortgage down payment. Our free tool helps you create a properly formatted document that satisfies bank and lender requirements.
April 13, 2026
Mary Johnson
789 Oak Lane, Chicago, IL 60601
(555) 000-1234
First National Bank
To Whom It May Concern,
I, Mary Johnson, am writing to confirm that I am providing a monetary gift of $25,000 to John Johnson, whose current address is 456 Elm St, Chicago, IL 60602, for the purpose of purchasing the property located at 789 Oak Lane, Dallas, TX 75201.
The funds were transferred on April 13, 2026. My relationship to the borrower is Mother.
I hereby certify that this gift does not require repayment in any form. There is no expectation of repayment, whether in the form of cash, services, or any other consideration. These funds are not borrowed and are given freely.
If you require any additional documentation or verification, please use the donor contact details listed above.
Sincerely,
Mary Johnson
Donor
What Is a Gift Letter for Mortgage?
A gift letter for a mortgage is a signed statement from a donor confirming that money given to a homebuyer for a down payment or closing costs is a gift, not a loan. Mortgage lenders require this letter to verify the source of funds and to ensure the borrower is not taking on undisclosed debt. Consumer finance guidance emphasizes that lenders need a clear record showing the money is a gift and not undisclosed debt that changes the borrower’s repayment picture.
When Do You Need a Gift Letter for Mortgage?
A gift letter is required when a family member, relative, or other approved donor contributes money toward a home purchase. Lenders such as those following FHA, VA, USDA, or conventional loan guidelines will ask for this letter during the underwriting process to confirm the funds do not need to be repaid. That is why gift letters are usually paired with bank records, transfer evidence, and exact names that match the loan file.
