Gift Letter Real Estate
Dear [Recipient's Name],
I am writing this letter to confirm that I, [Your Name], am providing a financial gift to you in the amount of [gift amount] to assist you with the purchase of the property located at [property address].
I want to clarify that this gift is being provided without any expectation of repayment or future consideration. It is given purely as a gesture of support and assistance towards your real estate purchase.
To ensure compliance with any legal or financial requirements, I confirm that the funds provided are my personal savings, and I am under no obligation to you or any other party regarding this gift. I understand that the funds will be used exclusively for the purchase of the property mentioned above.
If required, I am willing to provide any additional documentation or evidence of the source of these funds to satisfy any concerns raised by the relevant parties involved in the real estate transaction.
Please let me know if you need any further information or if there are any specific requirements regarding the gift. I am available to discuss this matter further if needed.
Sincerely,
Formal Gift Letter for Real Estate Purchase
Subject: Gift Letter for Real Estate Purchase
To Whom It May Concern,
I, [Donor’s Full Name], hereby confirm that I am giving [Recipient’s Full Name] the sum of [Amount] as a non-repayable gift to be used toward the purchase of the property located at [Property Address]. This money is given freely, without any expectation of repayment, lien, or future obligation.
I certify that the funds are from my personal account and are available for immediate use. This gift is given out of love and support to assist in this important purchase.
Sincerely,
[Donor’s Full Name]
Parental Gift Letter for Down Payment
Subject: Gift of Funds for Home Purchase
Dear [Recipient’s Name],
This letter serves to confirm that we, [Parent 1 Full Name] and [Parent 2 Full Name], are giving you the sum of [Amount] to be applied toward the down payment of your new home located at [Property Address]. This money is a gift and is not expected to be repaid.
We are pleased to assist you in achieving the goal of homeownership and affirm that this contribution comes without conditions or financial obligation.
With love,
[Parents’ Names]
Sibling Gift Letter for Real Estate Assistance
Subject: Confirmation of Gift for Property Purchase
Dear [Recipient’s Name],
I, [Donor’s Full Name], confirm that I am gifting the sum of [Amount] to my sibling, [Recipient’s Full Name], to be used toward the purchase of real estate at [Property Address]. This money is given freely and without expectation of repayment.
This gift is a personal gesture of support and carries no conditions, obligations, or liens.
Yours sincerely,
[Donor’s Full Name]
Quick Gift Email for Closing Funds
Subject: Gift Confirmation for Closing
Dear [Recipient’s Name],
This is to confirm that I am giving you [Amount] as a gift for the closing of your property purchase at [Property Address]. This gift is unconditional and does not need to be repaid.
Best regards,
[Donor’s Full Name]
Grandparent Gift Letter for Real Estate Purchase
Subject: Gift of Funds for Real Estate
Dear [Recipient’s Name],
As your grandparents, we are proud to support you in purchasing your first home. We hereby confirm that we are giving you [Amount] to be used as part of the down payment on the property located at [Property Address]. This gift is unconditional and not expected to be repaid.
We hope this home becomes a place of love and happiness for years to come.
With love,
[Grandparents’ Names]
Friend Gift Letter for Real Estate Support
Subject: Gift of Funds for Home Purchase
Dear [Recipient’s Name],
I am writing to confirm that I am providing you with [Amount] as a gift to support your purchase of the property at [Property Address]. This is given with no expectation of repayment and without conditions.
I am happy to help you in this exciting chapter of your life and wish you the very best with your new home.
Warm regards,
[Donor’s Full Name]
Joint Gift Letter from Multiple Donors
Subject: Joint Gift for Real Estate Purchase
To Whom It May Concern,
We, [Donor 1 Full Name] and [Donor 2 Full Name], confirm that we are jointly gifting [Recipient’s Full Name] the amount of [Total Amount] to be used toward the purchase of the property located at [Property Address]. This gift is unconditional and is not expected to be repaid by the recipient.
Sincerely,
[Donor 1 Full Name]
[Donor 2 Full Name]
Formal Gift Letter to Mortgage Lender
Subject: Gift Letter for Down Payment
To Whom It May Concern,
This is to certify that I, [Donor’s Full Name], am gifting the sum of [Amount] to [Recipient’s Full Name] for the purchase of the property located at [Property Address]. The funds are from my personal account, and no repayment is expected. This gift does not represent a loan and will not result in a financial obligation for the recipient.
Respectfully,
[Donor’s Full Name]
what is a gift letter in real estate and why do you need it
A gift letter in real estate is a written document that confirms funds provided for a home purchase are a gift and not a loan. Lenders require this document to ensure that the borrower is not taking on hidden debt that could affect their ability to repay the mortgage. It protects both the lender and borrower by clarifying the financial arrangement.
who should send a gift letter for real estate
- Parents or grandparents providing financial assistance.
- Siblings or other relatives offering support.
- Close friends contributing funds.
- In some cases, multiple donors contributing together.
requirements and prerequisites before writing a gift letter
- Ensure funds are available in the donor’s account.
- Confirm the amount being gifted.
- Clarify that the funds are unconditional and not a loan.
- Collect property details (address, recipient’s name).
- Check with the lender for specific wording requirements.
when should you use a gift letter in real estate
- When a family member is providing funds for a down payment.
- When friends contribute to closing costs.
- When multiple donors combine resources for the purchase.
- Any time gifted money is used in a real estate transaction and lender verification is required.
common mistakes to avoid in real estate gift letters
- Stating or implying repayment is expected.
- Not including the property address.
- Forgetting to sign and date the letter.
- Using vague language instead of clear confirmation.
- Providing incomplete donor information.
formatting guidelines for a real estate gift letter
- Keep the letter one page long.
- Use formal and clear wording.
- State the donor’s and recipient’s names clearly.
- Specify the gifted amount and property address.
- Include a statement that no repayment is expected.
faq about real estate gift letters
Q: Do gift letters need to be notarized?
Not always, but some lenders may require notarization for verification.
Q: Can a friend give a real estate gift?
Yes, as long as the lender allows non-family donors.
Q: How much can be gifted without tax implications?
Amounts vary depending on local tax laws, but many countries set annual tax-free gift limits.
Q: Does a gift letter guarantee loan approval?
No, it only verifies the source of funds; the borrower must still meet other requirements.
after sending a gift letter what should you do
- Provide proof of funds transfer (bank statements or wire receipts).
- Ensure the recipient’s lender acknowledges receipt.
- Keep a copy of the letter for your records.
- Be available in case the lender requests additional confirmation.
pros and cons of using gift letters in real estate
Pros:
- Allows buyers to purchase a home sooner.
- Reduces borrower’s financial burden.
- Helps families support each other.
Cons:
- Can raise questions from lenders if not clear.
- May have tax implications depending on the amount.
- Not always accepted if from non-family donors.
elements and structure of a real estate gift letter
- Donor’s full name and contact information.
- Recipient’s full name.
- Gift amount.
- Property address.
- Statement that funds are a gift, not a loan.
- Donor’s signature and date.








