Gift Letter for Mortgage Template

Gift Letter for Mortgage Template

What Is a Gift Letter for Mortgage?

A Gift Letter for a Mortgage is a legal instrument completed by the individual who gifts the prospective homeowner the funds to finance the mortgage. It is necessary to confirm the homeowner received the money from a legitimate source - their family member, partner, or friend. To make the down payment for the mortgage, you need to prove the gift source was legal and the individual who provided the gift agreed that you would use their money for your residence.

Alternate Name:

  • Mortgage Gift Letter.

Whether the money covers the down payment in its entirety or not, it will demonstrate your ability to deal with the loan and the lender will be inclined to enter into an agreement with you. You can download a Gift Letter for a Mortgage template through the link below.


How to Write a Gift Letter for Mortgage?

Here is how you should compose a Mortgage Gift Letter:

  1. Find out whether the mortgage lender has their own template for the borrower and their donor to complete. Contact the financial institution directly to follow all the internal guidelines they may have.
  2. Indicate your name and address. Write down the name of the person that receives the gift from you and explain the nature of your relationship.
  3. Record the gift amount and verify you understand that this money will be deposited as a down payment for the mortgage in question. At the moment, the sum of money you can gift to finance the mortgage is not limited. It is also required to state the address of the residential property in question if the parties already know it.
  4. State the date the money was transferred or will be transferred into the future homeowner's account. Note that the lender must tell you whether the transfer must be completed prior to the mortgage application approval or later.
  5. Certify the legitimate source of your gift - the money may come from your bank account, savings account, investments, etc. You can strengthen your letter by attaching documentation that confirms the source - for instance, a bank statement that shows the withdrawal of funds.
  6. Clarify that you are not going to burden the real estate with liens or encumbrances despite financing it with your own money. Not only it will protect the interests of the homeowner - it will also show the lender your gift is real and you are not going to get any compensation for your efforts.
  7. Add your contact information so that the lender can reach out to you if they need additional documents or details from you.
  8. Sign and date the form. You can send it directly to the mortgage provider or give it to the borrower who will enclose a copy of the letter to their mortgage application.

Why Do You Need a Gift Letter for a Mortgage?

If you do not have enough funds to buy and refinance the home and someone you know well has agreed to contribute to your mortgage, consider preparing a Gift Letter for a Mortgage Down Payment. This short document will show the lender you are not taking out additional loans to finance the transaction and you can count on your relative or friend to help you with a down payment without any future reimbursement. The signature of the gift provider will confirm the money you got in your account does not imply an extra financial burden for you and your family and you will be able to comply with the terms and conditions of your mortgage.

Not what you need? Take a look at the related templates and samples below:

Download Gift Letter for Mortgage Template

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  • Gift Letter for Mortgage Template


  • Gift Letter for Mortgage Template, Page 2


  • A generic Gift Letter for Mortgage sample
  • Gift Letter for Mortgage Template, Page 2
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