Gift Letter (Mortgage / Down Payment)
Letter confirming a financial gift is genuine and not a loan — required by mortgage lenders for down-payment funds.
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GIFT LETTER
(For purposes of a residential mortgage application)
Date: May 4, 2026
To: Cascadia Home Lending
Re: Mortgage application of Jordan Alex Taylor
Loan number: CHL-2026-001138
Property: 1147 Maple Way, Portland, OR 97215
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I, Sam Taylor, of 88 Pine Lane, Portland, OR 97214 (phone +1 503 555 0142), declare the following:
1. RELATIONSHIP
I am the Parent of Jordan Alex Taylor.
2. GIFT
I am giving Jordan Alex Taylor the sum of $25,000.00 ($25,000.00 U.S. dollars) on or about May 4, 2026.
The funds are being gifted from my account at Pacific Coast Bank — checking ###7421 (last four) and will be transferred by Wire transfer to escrow.
3. PURPOSE
The gift is to be used for: Down payment on a primary residence relating to the property at 1147 Maple Way, Portland, OR 97215.
4. NO REPAYMENT EXPECTED
The funds I am providing are an outright GIFT. There is no expectation of repayment, in cash, kind, services, or any other consideration, now or in the future. Specifically:
• The recipient is under NO OBLIGATION to repay any portion of the gift.
• There is NO loan, written or verbal, between us in connection with this gift.
• There is NO lien, claim, or interest of mine on the property being purchased.
• There is NO secret agreement, side letter, or expectation that this gift will be returned, offset against an inheritance, or recognised as a loan in any future proceeding.
5. SOURCE OF FUNDS
The funds being gifted are mine free and clear. They were not advanced or supplied to me by any party with an interest in the property transaction (including any seller, real estate agent, builder, developer, or mortgage broker). They have not been borrowed against the property being purchased.
6. SUPPORTING DOCUMENTS
I will provide, at the lender's request:
(a) A copy of my bank statement showing the source of the funds.
(b) A copy of the wire confirmation, cancelled check, or other transfer record.
(c) Any additional documentation reasonably required to establish that the funds are mine and that this is a true gift.
7. SIGNATURE AND CERTIFICATION
I certify under penalty of perjury under the laws of the United States that the foregoing is true and correct to the best of my knowledge.
_______________________________ Date: ____________________
Sam Taylor (Donor — signature)
_______________________________ Date: ____________________
Jordan Alex Taylor (Recipient — acknowledgement)
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LENDER'S NOTE
Most lenders require this letter to be on the donor's own letterhead or include the donor's contact information clearly. Most also require a "paper trail" — a copy of the donor's bank statement showing the funds before transfer, plus the transfer record (wire confirmation, deposit slip, or cancelled check). Begin the transfer well before closing so that the funds are seasoned in the recipient's account.
About this template
A gift letter is the document mortgage underwriters use to verify that funds going into a down payment are not a hidden loan. Hidden loans matter because every additional debt the borrower has reduces the maximum loan they qualify for under federal debt-to-income (DTI) ratios. Lenders following Fannie Mae, Freddie Mac, FHA, VA, or USDA guidelines all require a written gift letter, signed by the donor, certifying that the funds are an outright gift, identifying the relationship (most loan programs require an "immediate family" relationship — parent, child, sibling, spouse, sometimes grandparent or aunt/uncle, rarely close friend), and committing to a paper trail of the funds. The paper trail is just as important as the letter: lenders want to see the funds in the donor's account before transfer, the transfer itself (wire confirmation or cashier's check), and the funds landing in the recipient's or escrow account. Cash is essentially unusable as gift funds because it cannot be sourced; deposits made shortly before closing without a clear gift trail will be excluded from "qualifying funds." Gift tax: gifts above the annual exclusion ($18,000 per recipient per year as of 2026) require the donor to file Form 709, but tax is rarely owed because lifetime exclusions are very high (~$13.6M in 2026). For most families, the gift tax is paperwork, not a tax bill.
When to use it
- A family member is contributing to your home down payment.
- A spouse or partner is contributing to closing costs.
- You received a large deposit and your lender is asking for documentation.
- You are gifting funds and want to clearly distinguish from a loan.
- For estate-planning purposes — to document an inter-vivos gift.
What to include
- Donor and recipient identification (with relationship).
- Amount, gift date, and purpose.
- Source account and transfer method.
- Express disclaimer of any expectation of repayment.
- Property address (for mortgage gifts) and lender / loan number.
- Donor signature (and recipient acknowledgement).