Gift Letter for Mortgage – Free Template (Down Payment Gift)
Use this free gift letter for mortgage (United States): fill it in online, download it as Word or PDF, and follow our step-by-step guide – where to send it, whether it needs notarizing, what to attach and mistakes to avoid.
| Country | 🇺🇸 United States |
|---|---|
| Document type | Consumer & contracts |
| Format | Word, PDF & fill in online |
| Cost | Free |
| Time to complete | about 5 minutes |
| Notarization | Not required |
| Signed by | The donor (and sometimes the borrower) |
| Proof needed | Donor bank statement + your deposit record |
What is this letter for?
When a family member gives you money toward a down payment or closing costs, your lender usually needs a signed gift letter. It confirms who gave the money, how much, the relationship and – most importantly – that the money is a gift and does not have to be repaid. Lenders typically also ask for proof of the transfer, such as the donor’s bank statement and your deposit record.
Where do you send it?
Give it to your loan officer or upload it to the lender portal with proof of the transfer.
Does it need to be notarized?
Not required. Notarization is not usually required, but some lenders ask for it – check with your loan officer.
Step-by-step process
- Ask your lender which gift rules apply to your loan type.
- Have the donor transfer the funds by wire or check.
- Complete and sign the gift letter (or the lender’s form).
- Provide the donor’s statement and your deposit record.
- Keep copies for your records and for any gift tax filing.
What you need before you start
- Donor’s full name, address and relationship to you
- Gift amount and transfer date
- Property address and loan number
How to use this template
- Click each yellow field inside the letter and type your details directly (Enter jumps to the next field).
- Read the text through; the “Edit” button lets you change any sentence.
- Click “Word”, “PDF” or “Copy”, then sign and send.
Free template : gift letter for mortgage
Your full name
Street address
City, State ZIP
Phone | Email
Today’s date
Lender name
Lender address
Re: Gift letter – Borrower name, loan number Loan number
Dear Recipient name,
I, Donor full name, of Donor address, am the relationship, e.g. father of Borrower name.
I have given / will give a gift of $Amount to Borrower name on Transfer date to be applied toward the purchase of the property at Property address.
This is a gift. No repayment is expected or required, in cash or in services, now or in the future. The funds are not from any party to the transaction.
The funds were transferred from my account at Bank name, account ending in last 4 digits.
Sincerely,
Your full name
Letter variations
Gift already transferred
The gift of $[[Amount]] was transferred on [[Date]] from my account at [[Bank]] to [[Borrower name]]’s account at [[Bank]].
Gift to be given at closing
The gift of $[[Amount]] will be wired directly to [[Title/escrow company]] at closing.
Checklist before you send
- ☑️ Donor name, address, phone and relationship
- ☑️ Exact amount and date
- ☑️ No-repayment sentence included
- ☑️ Property address and loan number
- ☑️ Donor signature
- ☑️ Transfer proof attached
⚠️ Disclaimer: this template is for general guidance only and is not legal advice. Always check the requirements of the organization you are writing to before sending it.
🏛️ Official sources
Always check the latest rules on the official website before sending.
Common mistakes to avoid
- ❌ Leaving out the statement that no repayment is expected.
- ❌ Cash gifts that cannot be traced.
- ❌ Amount in the letter differs from the transfer.
Tips before you send it
- Use the lender’s own gift letter form if it provides one.
- Transfer the money by traceable means (wire or check).
- Keep the donor’s bank statement showing the withdrawal.
Frequently asked questions
Who can give a gift for a mortgage?
Usually a relative, fiancé(e) or domestic partner; rules depend on the loan type (conventional, FHA, VA).
Does the donor need to sign?
Yes, the donor signs; some lenders also ask the borrower to sign.
Do I need to report the gift to the IRS?
The donor may need to file a gift tax return if the gift exceeds the annual exclusion; the recipient generally does not pay tax on it.
Can a gift be a loan in disguise?
No. If repayment is expected, it is a loan and must be disclosed.
Where do I send this letter (gift letter for mortgage)?
Give it to your loan officer or upload it to the lender portal with proof of the transfer.
Does this letter (gift letter for mortgage) need to be notarized?
Not required – Notarization is not usually required, but some lenders ask for it – check with your loan officer.