A mortgage gift letter is a letter that is signed by the donor who provided gift funds to the receiver, certifying that the funds are not provided as a loan and that the donor is not expecting any repayment for the same.<\/b><\/p>\n

These gifts are used by the buyer to cover the cost of the mortgage and the down payment to purchase a property. <\/b><\/p>

The lender would require this letter to make sure that there is no additional debt taken by the borrower to cover the down payment or closing costs, as it may change the approval parameter for the borrower.<\/b><\/p>\n

A gift letter signed by the donor proves that the borrower has not taken any additional debt or loan from the donor and does not have to repay that to the donor.<\/b><\/p>\n

For example, let’s assume you want to buy a home and your parents provided $10,000 as a gift. <\/b><\/p>

You can use this money for your down payment and closing costs. However, to do so you must convince your mortgage lender that it is not a debt that you have to repay. <\/b><\/p>

To prove that, your parents need to provide a signed letter to the lender mentioning that it is a gift and not a debt. <\/b><\/p>

The gift letter proves your relationship with the donor, the exact amount gifted along with the source of funds, and states that you are not responsible to pay it back.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t