Gift Letter for a Mortgage
A gift letter for a home loan: the donor, the borrower, the amount, the property, where the money came from, and a clear statement that it does not have to be repaid.
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I, [donor's name], [relationship] of [borrower], am giving a gift of $[amount] to [borrower] towards the purchase of the property at [property address].
This is a gift. No repayment is expected or required, in money or in services, now or in the future. The money is not a loan, and I am not connected with the seller, the builder or any agent in the sale.
| Gift amount | $[amount] |
| Date given | [date] |
| Donor | [name] · [phone] |
| Donor's address | [address] |
| Relationship | [relationship] |
| Source of the money | [bank and account ending] |
What is a Gift Letter for a Mortgage?
A gift letter for a mortgage is a signed statement from someone giving money toward a home purchase, usually for the down payment or closing costs, confirming that the money is a gift and does not have to be repaid. It names the donor, the borrower, the amount, the property and the account the money came from. Lenders need it because a loan dressed up as a gift would change what the borrower can afford. Without it, the lender may not count the money, and the closing can stall.
Parents and grandparents often give money to help a son, daughter or grandchild buy a first home, and other relatives or a future spouse may give too, depending on the loan program. The lender asks for a gift letter when the borrower says part of the down payment is a gift, or when the borrower’s bank statements show a large deposit that did not come from their pay. The underwriter reads the letter alongside the paper trail: the donor’s bank statement, a copy of the check or wire confirmation, and the deposit into the borrower’s account.
Who may give, how much of the money may come from a gift and what proof is needed are set by the loan program and the lender. Conventional loans follow Fannie Mae or Freddie Mac guidelines, FHA, VA and USDA loans have their own rules, and lenders can add stricter requirements of their own. Programs differ on which relatives, partners, employers or charities may give, whether a gift can cover the whole down payment, and whether gifts may be used for a second home or an investment property. Ask your loan officer, and use the lender’s own gift letter form if it has one.
A gift letter is a statement of fact, not a loan agreement, and the gift must be real. If the borrower is expected to repay the money, it is a loan, and calling it a gift on a mortgage application can be mortgage fraud. The letter does not prove that the money exists; the bank records do that. It is not a tax document either: any gift tax filing is the donor’s responsibility, so check IRS guidance or ask a tax professional. And it is not a gift of equity from a seller, which lenders handle differently.
What to put in a Gift Letter for a Mortgage
These are the details this template asks for. Anything left blank is marked in red on the preview so you can see what is still missing.
| Field | What goes in it |
|---|---|
| Donor's name | For example: Robert Hayes |
| Donor's address | For example: 14 Barton Road |
| Donor's phone | For example: (555) 010-4421 |
| Relationship to the borrower | For example: Father |
| Borrower or borrowers | For example: Emily Hayes |
| Gift amount | For example: 25,000 |
| Date the gift is given | Free text |
| Property being bought | For example: 18 Willow Lane, Columbus, OH 43215 |
| Account the money comes from | For example: First Columbus Bank, checking account ending 4471 |
| Lender and loan number optional | For example: Riverbank Mortgage, loan no. RB-552901 |
How to write a gift letter for a mortgage
Ask your lender for its form and rules
Before the donor writes anything, ask your loan officer whether the lender has its own gift letter form, who may give under your loan program, and which documents they need to see the money move. Some lenders accept only their own form. If they accept a letter, use this template and check that it covers everything on their list, such as the loan number, and both signatures with dates.
Enter the donor and the relationship
Give the donor’s full legal name, current address and phone number; the underwriter may call to confirm the gift. In ‘Relationship to the borrower’, write one or two words, such as father, grandmother, aunt or fiancé, and the letter turns it into ‘father of Emily Hayes’ in the opening sentence. If there are two borrowers and the donor is related to only one, click that sentence on the page and name just that borrower.
State the amount, the property and the date
Enter the gift amount exactly, to the dollar, matching the transfer the bank records will show. Add the address of the property being bought; if you are not yet under contract, ask the lender how it wants the property described. Enter the date the money was or will be given. If the donor will wire the money to the title or escrow company at closing rather than to the borrower, tell the lender and follow its instructions.
Show where the money comes from
In ‘Account the money comes from’, give the donor’s bank and the last four digits of the account, such as ‘checking account ending 4471’, never the full number. Move the money by check, wire or bank transfer from that account, not in cash, so every step can be traced. Keep the donor’s bank statement showing the withdrawal, the check copy or wire confirmation, and the borrower’s statement showing the deposit.
Sign the letter and send it with the proof
The donor and the borrower both sign and date the letter, and the template includes a space for each. Lenders do not usually ask for a notary, but arrange one if yours does. Read the statement that no repayment is expected before signing, because it must be true. Send the signed letter and the transfer records to your loan officer in the way the lender asks, and keep copies of everything until after closing.
Gift letter for mortgage samples
Two sample gift letters as the form prints them: one from a parent toward a down payment, and one from a grandparent toward closing costs. Use your lender’s own form if it has one.
Sample gift letter from a parent
Gift Letter
I, Robert Hayes, father of Emily Hayes, am giving a gift of $25,000 to Emily Hayes towards the purchase of the property at 18 Willow Lane, Columbus, OH 43215.
This is a gift. No repayment is expected or required, in money or in services, now or in the future. The money is not a loan, and I am not connected with the seller, the builder or any agent in the sale.
Gift amount: $25,000
Date given: November 16, 2026
Donor: Robert Hayes · (555) 010-4421
Donor’s address: 14 Barton Road, Columbus, OH 43215
Relationship: Father
Source of the money: Lakeview Savings Bank, checking account ending 4471
Lender and loan no.: Riverbank Mortgage, loan no. RB-552901
Robert Hayes — donor’s signature and date
Emily Hayes — borrower’s signature and date
Sample gift letter from a grandparent
Gift Letter
I, Margaret Hayes, grandmother of Marcus Bell, am giving a gift of $8,000 to Marcus Bell towards the purchase of the property at Unit 5, 220 Lake Street, Columbus, OH 43215.
This is a gift. No repayment is expected or required, in money or in services, now or in the future. The money is not a loan, and I am not connected with the seller, the builder or any agent in the sale.
Gift amount: $8,000
Date given: December 3, 2026
Donor: Margaret Hayes · (555) 010-7781
Donor’s address: 9 Orchard Way, Westerville, OH 43081
Relationship: Grandmother
Source of the money: Lakeview Savings Bank, savings account ending 2290
Margaret Hayes — donor’s signature and date
Marcus Bell — borrower’s signature and date
Common mistakes
- Handing over the gift in cash, or depositing it in several small amounts, breaks the paper trail, and the lender may refuse to count money it cannot trace.
- Writing an amount in the letter that differs from the transfer, even by a few dollars, sends the file back to the underwriter and can push back the closing.
- Calling money a gift when the family expects it to be paid back misleads the lender about your debts and can amount to mortgage fraud.
- Accepting a gift from someone your loan program does not allow, such as a friend under some programs, means the lender cannot count it, often late in the process.
- Moving the money through several accounts before it reaches the borrower creates more statements to explain and gives the underwriter more questions to ask.
Frequently asked questions
What is a gift letter for a mortgage?
It is a signed letter from someone giving the borrower money toward a home purchase, usually for the down payment or closing costs. It names the donor and the borrower, states their relationship, the amount, the date, the property and the account the money came from, and confirms that no repayment is expected. Lenders use it, together with bank records, to count the gift as part of the borrower’s funds.
Who can give gift funds for a mortgage?
It depends on the loan program and the lender. Relatives such as parents, grandparents, siblings, aunts and uncles are generally allowed, and some programs also accept a fiancé or domestic partner, an employer, a close friend, a charity or a government housing program. Anyone with an interest in the sale, such as the seller, the builder or a real estate agent, generally cannot give. Ask your loan officer what your program allows.
Does a gift letter need to be notarized?
Usually not. Lenders generally ask for a gift letter signed and dated by the donor, and often by the borrower, without a notary, but a lender or program can ask for one. If your lender has its own gift letter form, use that. Ask your loan officer before anyone signs, and if notarization is needed, sign in front of the notary rather than beforehand.
What documents do lenders need with a gift letter?
Usually proof that the money moved from the donor to the borrower: the donor’s bank statement showing the withdrawal or the available funds, a copy of the check or the wire confirmation, and the borrower’s bank statement showing the deposit. If the money goes straight to the title or escrow company at closing, the lender will want the donor’s wire records instead. Each lender has its own list.
Can a gift cover the whole down payment?
Sometimes. Some loan programs allow the entire down payment and closing costs to come from an acceptable gift, while others require part of the money to come from the borrower’s own funds, depending on the loan type, the property and the amount borrowed. Many programs do not allow gift funds for an investment property. Your loan officer can tell you what applies before the donor sends anything.
Does the donor have to pay tax on a gift for a house?
In the US, gift tax is the donor’s responsibility, not the borrower’s. A gift above the annual exclusion amount set by the IRS, which changes from year to year, may mean the donor has to file a gift tax return, though filing a return does not always mean tax is owed. Check current IRS guidance or ask a tax professional; the gift letter itself is not a tax document.
What happens if the gift is actually a loan?
Then it should not be described as a gift. A loan the borrower must repay is a debt, and lenders count debts when they decide how much you can afford. Signing a gift letter that says no repayment is expected, when it is, misstates your finances to the lender and can be mortgage fraud. If family money is a loan, tell your loan officer and ask how it can be treated.
This page explains general practice and is not legal advice. Requirements differ between countries and, in some cases, between states — check what applies where the document will be used.