Mortgage gift letter template
A gift letter for a mortgage down payment with the donor, relationship, amount, the property and the statement that no repayment is expected, as lenders require.
- ๐บ๐ธ US format ยท Letter size
- Free
The gift has to be real
Sign this letter only if the money is a true gift and nobody expects it back. A gift letter that hides a loan, or names a donor who did not give the money, is a false statement to a mortgage lender and a federal crime.
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Your lender may need more than this letter
This is a general template, not legal advice. Lenders usually ask for bank statements showing the gift leaving the donor's account and arriving in yours, and some require their own gift letter form. Check with the loan officer before you have the donor sign.
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Gift Letter
October 5, 2026
To: Northwind Home Loans
| Donor | Casey Nguyen | Phone | (555) 010-0000 |
|---|---|---|---|
| Donor address | 4410 Oak Hill Dr San Antonio, TX 78230 | ||
| Relationship to borrower | Parent | Gift amount | $25, |
| Source of funds | First National Bank, checking account ending in 4471 | Date of transfer | September 28, 2026 |
| Borrower(s) | Jordan Lee and Sam Lee | ||
| Property address | 123 Main St, Austin, TX 78701 | ||
I, Casey Nguyen, am giving a gift of $25,000.00 to Jordan Lee and Sam Lee, to be applied toward the purchase of the property at 123 Main St, Austin, TX 78701. My relationship to the borrower is parent. The funds were transferred on September 28, 2026 from my account at First National Bank, checking account ending in 4471.
This is a bona fide gift. No repayment is expected or implied, in cash or by future services. I have no interest in the property being purchased, and I am not the builder, developer, real estate agent, seller or any other party with an interest in this transaction, nor affiliated with one.
The borrower(s) confirm that the gift described above has been or will be received and that no repayment is owed.
| Donor | |
|---|---|
| Printed name | Casey Nguyen |
| Phone | (555) 010-0000 |
| Date | ____________ |
| Signature | ย |
| Borrower | |
|---|---|
| Printed name | Jordan Lee and Sam Lee |
| Date | ____________ |
| ย | |
| Signature | ย |
How to use it
Fill in the donor's name, address and phone, how they are related to you, the amount, where the money comes from and when it moved or will move, then the borrower names and the property address. The form prints the facts as a grid, the gift statement, the fixed no-repayment sentence lenders look for, and signature columns for the donor and the borrower.
Have the donor sign in ink and date it. Send the signed letter to your loan officer with the donor's bank statement showing the withdrawal and your statement showing the deposit, or the wire confirmation if the money went to the closing agent.
Things to watch
The no-repayment sentence is there because a gift that is secretly a loan is mortgage fraud for both parties. If any part of the money will be paid back, do not use this form; tell the lender it is a loan. Gift funds that have been in your account for two or more statements are easier to document than money that arrived last week.
Calculators that go with this
Frequently asked questions
Who can give a down payment gift?
For conventional loans sold to Fannie Mae: a relative by blood, marriage, adoption or legal guardianship, a domestic partner, a fiance or someone with a long-standing family-like relationship. FHA also allows employers, labor unions and close friends with a documented interest in the borrower. Nobody with a stake in the sale (seller, agent, builder) can be the donor, apart from a seller who is also a qualifying relative.
Is there a gift tax?
The donor, not the borrower, deals with gift tax. Gifts above the annual exclusion per recipient have to be reported on IRS Form 709, but no tax is usually due until the lifetime exemption is used up. The donor should check the current exclusion amount with a tax preparer.
Does the letter have to be notarized?
No. Lenders accept a signed and dated letter from the donor. What they do require is the paper trail: statements or a wire receipt that show the exact amount moving from the donor to you or to the closing agent.
Is what I type saved anywhere?
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