Mortgage Gift Letter
Subject: Gift Letter for Mortgage Loan Application
Dear [Recipient's Name],
I am writing this letter to confirm that I, [Your Name], am making a gift of [Amount of Gift] to [Recipient's Name] to assist with the down payment/closing costs associated with the purchase of the property located at [Property Address]. I have a personal relationship with the recipient and no repayment of this gift is expected or implied.
The funds for this gift are derived from my personal savings, and I certify that I have no expectation of repayment from the recipient. I understand that this gift is non-refundable and that it will not be subject to any lien, security interest, or encumbrance.
To support the mortgage loan application process, I am providing the following details:
Gift Amount: [Amount of Gift]
Date of Gift: [Date of Gift]
Source of Funds: [Explanation of the source of funds, e.g., savings, investment, inheritance, etc.]
Relationship to Recipient: [Explain your relationship with the recipient]
I also understand that the mortgage lender may require additional documentation, such as bank statements or a copy of this letter, and I am willing to provide any further documentation necessary to verify the gift.
Please find attached the relevant bank statement, indicating the withdrawal of funds for the gift.
Should you have any further questions or require any additional information, please feel free to contact me at [Your Phone Number] or [Your Email Address].
Thank you for your attention to this matter.
Sincerely,
Standard Mortgage Gift Letter
Subject: Gift of Funds for Mortgage
Dear [Lender's Name],
I, [Donor's Name], hereby confirm that I am gifting [Recipient's Name] the sum of [Amount] to be used towards the purchase of a home located at [Property Address]. This gift is made freely and without expectation of repayment.
The funds provided come from my personal savings and are not a loan in any form. Attached is a copy of my bank statement verifying the availability of these funds.
Sincerely,
[Donor's Name]
[Date]
Family Member Gift Letter
Subject: Confirmation of Gift
Dear [Lender's Name],
I am writing to confirm that I am providing [Recipient's Name], my [relationship, e.g., daughter], with a gift of [Amount] to assist with their mortgage for [Property Address]. This is a genuine gift and no repayment is expected.
Please find attached proof of funds and my identification as requested.
Thank you for your attention.
Best regards,
[Donor's Name]
Casual Gift Letter Email
Hey [Lender's Name],
Just letting you know that I’m giving [Recipient's Name] [Amount] to help with their home purchase at [Property Address]. This is a gift with no strings attached, and they won’t have to pay me back.
Attached are my bank details to show the funds are available. Let me know if you need anything else.
Cheers,
[Donor's Name]
Corporate Mortgage Gift Letter
Subject: Gift of Funds for Mortgage Assistance
To Whom It May Concern,
[Company Name] is providing a gift of [Amount] to [Recipient's Name] to support the purchase of [Property Address]. This assistance is a gift and does not constitute a loan or require repayment.
Attached are the relevant authorization documents and proof of funds.
Sincerely,
[Authorized Officer Name]
[Title]
[Company Name]
Provisional Gift Letter Requesting Lender Approval
Subject: Pending Gift Approval for Mortgage
Dear [Lender's Name],
I intend to provide [Recipient's Name] with [Amount] as a gift towards the purchase of [Property Address]. I am writing to confirm that these funds are available and to seek your guidance on any specific documentation you require.
Please advise if additional forms or verification are needed before closing.
Thank you for your guidance.
Best regards,
[Donor's Name]
Heartfelt Parent to Child Gift Letter
Subject: A Gift for Your New Home
Dear [Child's Name],
I am delighted to gift you [Amount] to help you purchase your new home at [Property Address]. This gift is given with all my love and no expectation of repayment.
I hope this helps you begin this exciting chapter of your life. Enjoy your new home!
Love,
[Parent's Name]
Quick One-Line Mortgage Gift Email
Subject: Gift Confirmation
Dear [Lender's Name],
I confirm that I am gifting [Recipient's Name] [Amount] to assist with the purchase of [Property Address]. This is a gift, not a loan.
Regards,
[Donor's Name]
Professional Non-Family Gift Letter
Subject: Mortgage Gift Funds Declaration
Dear [Lender's Name],
I, [Donor's Name], am providing [Recipient's Name] with a gift of [Amount] to assist with the purchase of [Property Address]. This gift is unconditional, and there is no expectation of repayment.
Attached is proof of funds and my identification. Please let me know if additional documentation is required.
Sincerely,
[Donor's Name]
What / Why: Purpose of a Mortgage Gift Letter
A Mortgage Gift Letter is a formal statement confirming that a sum of money is being given to a homebuyer as a gift for the purpose of purchasing a property.
It is primarily used to:
- Inform the lender that funds are a gift, not a loan.
- Ensure compliance with mortgage underwriting requirements.
- Provide proof of source and authenticity of funds.
- Facilitate smooth mortgage approval without repayment obligations.
Who Should Send a Mortgage Gift Letter
- Family members providing funds to a homebuyer.
- Employers or organizations offering mortgage assistance.
- Friends or trusted individuals offering a financial gift for property purchase.
- Any donor whose funds are intended to support a mortgage transaction.
Whom Should the Mortgage Gift Letter Be Addressed To
- Mortgage lenders or underwriters.
- Loan officers processing the mortgage application.
- Real estate attorneys if required by lender documentation.
When to Send a Mortgage Gift Letter
- Before or at the time of mortgage application submission.
- During loan underwriting when proof of gift funds is requested.
- Prior to closing to confirm source of funds for the down payment.
How to Write and Send a Mortgage Gift Letter
- Include donor and recipient names clearly.
- Specify the exact gift amount.
- State that the funds are a gift with no repayment required.
- Provide relationship to the recipient if applicable.
- Attach proof of funds and identification as requested.
- Send via email or attach to the mortgage application as a formal letter.
Requirements and Prerequisites Before Writing
- Confirm the source of the gift funds.
- Ensure funds are liquid and readily available.
- Collect identification and bank statements for verification.
- Understand lender requirements regarding format and content.
- Confirm relationship if requested by lender (family, friend, or corporate entity).
Formatting Guidelines for Mortgage Gift Letters
- Length: Usually 1 page or less.
- Tone: Formal and professional.
- Wording: Clear statement that the funds are a gift and not a loan.
- Attachments: Proof of funds, identification, relationship verification if required.
- Mode: Printable letter or scanned email attachment depending on lender preference.
Tricks and Tips for Mortgage Gift Letters
- Clearly state "This is a gift and does not require repayment."
- Include both donor and recipient signatures when required.
- Provide a copy of the donor’s bank statement to verify funds.
- Mention the property address to link the gift to the mortgage.
- Keep a copy for both parties’ records.
Common Mistakes to Avoid
- Failing to specify that the gift is non-repayable.
- Not providing sufficient proof of funds.
- Omitting the property address or loan reference.
- Sending the letter after closing, which may delay mortgage approval.
- Using informal language in a professional context.
Elements and Structure of a Mortgage Gift Letter
- Subject/Title: Indicate it is a mortgage gift letter.
- Recipient and Donor Names: Clearly identify both parties.
- Gift Amount: Specify exact funds being gifted.
- Purpose: State the gift is for mortgage/down payment.
- Non-Repayment Clause: Confirm no repayment is expected.
- Relationship: Indicate relationship if relevant.
- Attachments: Proof of funds, ID, authorization if needed.
- Closing & Signature: Donor signs and dates the letter.
After Sending / Follow-up Actions
- Confirm lender has received and accepted the letter.
- Provide any additional documentation if requested.
- Retain copies of the letter and attachments for records.
- Follow up promptly if lender has questions or needs clarification.
FAQ About Mortgage Gift Letters
Q: Can I gift money to a friend for a mortgage?
A: Yes, lenders typically accept gifts from friends, but documentation of non-repayment is required.
Q: Is a bank statement always necessary?
A: Most lenders require proof of funds to confirm availability.
Q: Does the donor need to sign the letter?
A: Yes, the donor’s signature is typically required for verification.
Q: Can corporate gifts be used for mortgages?
A: Yes, but authorization from the company and proper documentation is required.
Q: Is repayment ever allowed?
A: No, the letter must explicitly state that the gift is non-repayable.
