Gift letters in mortgages

Last modified March 14, 2022

This is a letter provided to the Lender by the Borrower acknowledging that the money being used, generally part of the down payment, to purchase real property was a gift from a relative, or close friend and has no stipulation or obligation to repay it. Typically this situation arises with First Time Home Buyers whether or not they use some form of down payment assistance. Gift letters can also come from employers under some circumstances.