Do I need a gift letter for down payment funds?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes. Any gifted down payment money requires a signed gift letter stating the donor, the amount, the relationship, and that no repayment is expected. Underwriting requires it on every gift.
You'll also show the funds leaving the donor's account and entering yours. We provide the exact letter template and walk you through the documentation so it clears with no delay.
Why the letter matters
Yes. Any gift used toward your down payment needs a signed gift letter. Lenders require it to prove the money is a gift and not a loan you must repay. A hidden loan would change your debt and could sink your approval.
The letter is short. It lists the donor, the dollar amount, the date, your relationship, and a clear line stating no repayment is expected.
What goes with the letter
We also trace the funds. That usually means the donor's bank statement or a copy of the transfer, plus proof of the money landing in your account. The letter and the paper trail work together.
Do not stress over the format. We provide the exact template and check it before it reaches underwriting. Reach out and we will get your gift documented right the first time.