Free Gift Letter for a Mortgage Template

Who can gift your funds may depend on your lender and their requirements. In most cases, the donor must have a close relationship with the borrower, such as:

• Parent(s)
• Grandparent(s)
• Sibling(s)
• Partner(s)

The donor cannot be someone who has a financial interest in the sale. This means that the donor cannot be the seller, builder, or real estate agent. This helps prevent hidden incentives and undisclosed financing.

A gift letter for a mortgage should include key details about the borrower, the donor, and the source of the funds. It’s also a good idea to check with your lender if they have any specific requirements. Follow the step-by-step guide below to create a mortgage gift letter that lenders can easily review and accept.

Step 1 – State that the Funds Are a True Gift

Begin your letter by clearly stating that the money is a gift. In your letter, confirm that the funds were given voluntarily and that no repayment is expected now or in the near future. This statement should be clear, as this is the most important part of your letter.

Step 2 – Identify the Donor and Borrower

Add the full legal names of both parties. Include the donor’s full legal name and mailing address, and specify their relationship to the borrower. Disclosing your relationship is important, as most lenders require this information to determine eligibility for the gift.

Step 3 – Specify the Gift Amount

Write the exact dollar amount being gifted. Do not estimate the amount or round it off. The amount should match the amount on your bank records or the transfer confirmation your lender will review.

Step 4 – Confirm the Source of Funds

Your gift letter for a mortgage should state that the funds are from the donor’s personal funds and were not borrowed from another person or lender. It should also state that there are no hidden conditions, obligations, or repayment agreements tied to the gift.

Step 5 – Include the Property Address

List the full address of the home being purchased. Make sure it matches the address on your purchase agreement or loan application.

Step 6 – Confirm the Donor Has No Interest in the Sale

Include a statement confirming that the donor is not the seller, builder, or real estate agent, or anyone else who stands to benefit from the sale of this home. This helps show that the money is truly a gift and not a part of the purchase deal.

Step 7 – Sign and Date the Letter

The donor should sign and date the letter. Some lenders may also ask the borrower to sign to confirm the receipt of the gift and acknowledge that repayment is not required.

Step 8 – Add Notary Acknowledgment (If Required)

A gift letter for a mortgage loan does not always need to be notarized. However, some lenders may request notarization. If they do, include a notary acknowledgment and sign the letter in front of a notary public.

View a mortgage gift letter template below to see what your completed letter should look like. Then, use Legal Templates’s step-by-step questionnaire to fill out and download yours in PDF or Word format.

After you complete your letter of gift for a mortgage, you can submit it to your lender while they are reviewing your mortgage application. In addition to the letter, your lender may also request proof that the money was transferred, such as:

• A bank statement showing the withdrawal from the donor’s account or the deposit into the borrower’s account.
• A wire transfer confirmation if the funds were sent electronically.
• A copy of the check used for the gift.

Providing complete and correct information can help avoid delays in your mortgage approval process.