Gift Letter

[Date]

To Whom It May Concern:

I, [Your Name], of [Your Address], hereby confirm that I have given a gift of $[Gift Amount] to [Recipient Name] of [Recipient Address]. This gift is given freely and voluntarily, with no expectation of repayment, and is not a loan. The funds are a true gift.

The source of the gifted funds is [Source of Funds, e.g., savings account, sale of assets]. I have no interest, direct or indirect, in the property being purchased or refinanced by the recipient.

I understand that this letter may be used in connection with a mortgage application and that any misrepresentation may result in legal consequences.

Sincerely,

[Your Name]

[Your Signature]

About this Gift Letter template

A gift letter is a formal document that confirms a monetary gift, often used for mortgage down payments or tax purposes. This free template helps you create a clear, legally sound gift letter quickly. Download in Word or PDF.

Use this gift letter template as a starting point: open the editor, replace the bracketed placeholders with your own names, dates, and specifics, then export the finished letter to Word, PDF, or Google Docs. Prefer a draft written for you? Click AI Generator and describe what you want to say — the editor will draft a full, natural-sounding letter that you can keep editing.

What to Include in Your Gift Letter

Make sure your letter hits every essential element before you send it.

Date of the letter
Full names and addresses of both donor and recipient
Exact gift amount in dollars
Statement that the gift is not a loan and requires no repayment
Source of the gifted funds
Donor's signature

How to Use this Template

Follow these three simple steps to customize and generate your personalized letter in minutes.

1. Fill in the Details

Enter the date, your name and address, the recipient's name and address, the gift amount, and the source of funds. Customize the letter as needed.

2. Download and Sign

Download the completed letter in Word or PDF format. Print it, then sign and date it. If required, have it notarized.

3. Provide to Recipient

Give the signed gift letter to the recipient. They will submit it to their mortgage lender or keep it for tax records.

Writing Tips

Keep the language clear and unambiguous. State explicitly that the gift is a true gift with no repayment obligation. Include the source of funds to satisfy mortgage lender requirements. Use formal letter format and ensure both parties sign. If required, have the letter notarized to add legal weight. Always date the letter and keep a copy for your records.

Common Mistakes to Avoid

One common mistake is failing to state that the gift is not a loan, which can cause issues with mortgage lenders. Another is omitting the source of funds, leading to additional documentation requests. Using vague language like 'financial assistance' instead of 'gift' can create confusion. Also, not signing the letter or dating it improperly may render it invalid. Finally, forgetting to include both parties' full addresses can delay processing.

Gift Letter Template FAQ

A gift letter is a written document confirming that a sum of money given to someone is a gift, not a loan. It is commonly used in real estate transactions to verify that down payment funds are not borrowed.

Lenders require gift letters to ensure that down payment funds are a true gift and not a loan that could affect the borrower's debt-to-income ratio. It also helps with tax documentation for large gifts.

Gift letters are primarily used by homebuyers receiving financial help from family or friends for a down payment. Lenders, tax professionals, and donors also use them for record-keeping.

A gift letter should include the date, donor and recipient names and addresses, gift amount, a statement that it is a gift with no repayment, source of funds, and donor's signature. Notarization is optional but recommended.

Use a formal business letter format. Keep the language clear and concise. Ensure all names and addresses match legal documents. Sign in ink and consider notarizing. Date the letter and make copies for both parties.

Yes, gift letters are widely accepted by mortgage lenders and tax authorities. However, requirements vary by lender and jurisdiction. Notarization may be required in some cases. Always check with your lender or tax advisor.