Everything You Need to Know About Mortgage Gift Letters Template
What Is a Mortgage Gift Letter?
A Mortgage Gift Letter is an official document confirming that money contributed toward a homebuyer’s down payment or closing costs is a true gift with no repayment expectations. Lenders require this to prevent undisclosed debt that could affect mortgage approval.
Who Needs a Mortgage Gift Letter?
You need one if:
- You’re receiving funds from family or close relatives
- Your lender requires proof of gift funds
- A donor is contributing to your FHA, VA, USDA, or conventional loan
- You want a clear record for underwriting and processing
When to Use a Gift Letter
A gift letter is necessary when submitting mortgage documents, typically during:
- Loan application
- Underwriting review
- Down payment verification
Key Information Required
- Donor’s name, address, and relationship to borrower
- Gift amount
- Date of transfer or expected transfer
- Statement confirming the gift is not a loan
- Donor’s signature
- Borrower’s acknowledgment
Why a Gift Letter Is Important
- Helps verify legitimate funds
- Prevents delays during underwriting
- Ensures compliance with lender guidelines
- Clarifies financial responsibility for both parties
How to Create One
- Open the Gift Letter Template in Zendocs.
- Fill in donor and borrower details.
- Add the gift amount and transfer information.
- Sign electronically or print for wet signatures.
- Provide the completed letter to your lender.
