Mortgage Glossary
Down Payment Gift Letter
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A down payment gift letter is a signed statement confirming that funds given toward a purchase are a gift with no repayment expected.
What Down Payment Gift Letter means
Lenders require it to prove the money isn't a hidden loan that would raise DTI. It names the donor, relationship, amount, and that no repayment is owed.
Florida example
A Florida buyer receiving $20,000 from a parent provides a gift letter plus bank records showing the transfer. The documentation lets the lender count the funds without treating them as debt.
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