Gift letter for mortgage down payment funds from family
If a parent or relative is giving you money toward a down payment, most lenders want a signed gift letter showing it is a gift, not a loan. This prompt has your todo.is agent draft one with the donor, the amount, the relationship, the property and the transfer details, checked against your lender's own form if you attach it.
The prompt
- Write a gift letter for my mortgage. The donor is [DONOR FULL NAME, ADDRESS AND PHONE], my [RELATIONSHIP]. They are giving [GIFT AMOUNT] to [BORROWER NAMES] toward the purchase of [PROPERTY ADDRESS]. The money [WAS SENT OR WILL BE SENT] on [TRANSFER DATE] from [DONOR BANK AND ACCOUNT LAST 4 DIGITS]. My lender is [LENDER NAME AND LOAN TYPE]. Include a clear statement that no repayment is expected or required, signature and date lines for donor and borrowers, and a checklist of the documents lenders usually ask for with gift funds. If I attach the lender's own gift form, use its wording instead. Word and PDF.
What to change
- [DONOR FULL NAME, ADDRESS AND PHONE]: E.g. "Linda Park, 45 Maple Street, Portland, OR, 555-0133".
- [RELATIONSHIP]: E.g. "mother". Many loan types only allow certain relationships, so ask your lender.
- [GIFT AMOUNT]: E.g. "$20,000".
- [BORROWER NAMES]: E.g. "Daniel and Sofia Park".
- [PROPERTY ADDRESS]: The home you are buying, e.g. "18 Fern Hill Road, Beaverton, OR 97005".
- [WAS SENT OR WILL BE SENT]: Write "was sent" or "will be sent".
- [TRANSFER DATE]: E.g. "3 November 2026".
- [DONOR BANK AND ACCOUNT LAST 4 DIGITS]: E.g. "First Coast Bank, checking ending 8812". The lender may ask to see the withdrawal.
- [LENDER NAME AND LOAN TYPE]: E.g. "Crestview Home Loans, FHA loan" or "conventional". Rules differ by loan type.
Example result
- Gift letter
- Date: 9 October 2026
- Lender: Crestview Home Loans
- Loan type: FHA
- I, Linda Park, of 45 Maple Street, Portland, OR 97201, phone 555-0133, am giving a gift of $20,000.00 to my son and daughter-in-law, Daniel Park and Sofia Park.
- This gift is for the purchase of the property at 18 Fern Hill Road, Beaverton, OR 97005.
- No repayment of this gift is expected or required, now or in the future, in cash or in services. This money is not a loan, and it is not being given by anyone with an interest in the sale of the property, such as the seller, a real estate agent or a builder.
- Source and transfer of funds
- • Donor bank: First Coast Bank, checking account ending 8812
- • Transfer date: 3 November 2026
- • Transfer method: wire to the borrowers' account at Riverstone Credit Union, ending 4410
- Donor signature: ______________________ Date: ________
- Linda Park
- Borrower signature: ______________________ Date: ________
- Daniel Park
- Borrower signature: ______________________ Date: ________
- Sofia Park
- Documents lenders often ask for
- • The signed gift letter (or the lender's own form)
- • Proof the donor had the money, such as a recent bank statement
- • Proof of the transfer: wire confirmation, cancelled check or deposit slip
- • Your bank statement showing the deposit arriving
- Good to know
- • Rules on who can give and how much differ by loan type (conventional, FHA, VA, USDA). Ask your loan officer first.
- • Many lenders have their own gift letter form. If yours does, use it.
- • Large gifts can have tax reporting rules for the donor. A tax professional can confirm what applies.
How to do it with todo.is
- Copy the prompt and fill in the donor, the gift and the property details.
- Paste it on the todo.is Today screen, attaching your lender's gift form if they gave you one.
- Your agent drafts the letter as Word and PDF, with signature lines and a documents checklist.
- Send it to the donor to read and sign, and ask your agent for a reminder to collect the transfer proof.
Tips for a better result
- Ask your lender for their own gift form first. Many prefer it, and some require it.
- Use the exact amount that will be transferred. If it changes, sign a new letter.
- Keep a clear paper trail: donor's statement, the transfer, and your statement showing it arrive.
- Avoid cash gifts. Lenders need to trace the money from account to account.
- Check who can be a donor for your loan type. Family members are usually fine; sellers and agents are not.
gift letter for mortgage: FAQ
- What is a gift letter for a mortgage? A signed letter from the person giving you money for a home purchase. It states the amount, the relationship, the property and that the money does not need to be repaid.
- Who can give a gift for a down payment? Usually family members, and with some loans also partners, employers or charities. Each loan type has its own rules, so check with your lender.
- Does the donor have to pay tax on the gift? In the US, large gifts may need to be reported by the donor, but tax is often not owed. Ask a tax professional about your situation.
- Can my agent check the gift letter against my lender's rules? Attach the lender's form or guidelines and your agent will match its wording and flag anything missing. Your loan officer has the final say.
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