Gift Letter

Gift Letter

A gift letter is a document that outlines the terms of a gifted down payment in a purchase transaction.  Money provided by a family member to be used as a down payment, as long as it is not repayable to that family member, can be used in lieu of the borrower having to use his or her own funds for the down payment.  This form must be completed by both the recipients, or the purchasers, and the donors, who are the family members providing the gift to the recipients.

This form will be requested by the lender to prove to the lender that the down payment has not been borrowed.

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