If you are buying a house and someone is planning on gifting you funds for your down payment you will need to give a letter to the bank explaining the who, what, where, and why of the gift funds.

Below is a sample letter that you may use to share with your lender. Some banks may want more or less information so please use our letter just as an example for what details you will need to share.

Download by clicking on this link Sample-Gift-Letter

Sample Down Payment Gift Letter

I, ________(A)_________ hereby certify that I/We given/will give a gift of $ _____(B)_______ to __(C)____________, my ______(D)____ for the premises located at ______________(E)________________________________________________ on ___(F)____. I/We certify that this is a bona fide gift and there is no obligation, expressed or implied, to repay this sum in cash or other services of any kind now or in the future. I/We understand that documentation of this gift will be required.

• Documentation that the gift has been withdrawn from the account listed below.
• Documentation that the applicant and/or the applicant’s attorney has received the gift funds prior to settlement.

Please accept this letter as proof that I am giving ______(G)______ permission to confirm that the funds came from the account listed below:

Name of Depository or other Source: ______(H)________
Address: ______(I)__________________________________________
Account Number: ______(J)___________________________________

I/We certify that gift funds referenced above were given to the applicant by the donor listed below, and were not made available to the donor from any individual or entity with an interest in the sale of the property. I/We understand that this statement includes the seller, real estate agent, builder, loan officer, or any entity associated with them.

___________(K)_______________________ _____________(L)__________________ ______________(M)_____________________________________________________ ______(N)_________________________ ________________(N)__________________

Documentation of gift funds must meet the lender’s requirements. Most gift funds related to a mortgage loan must be documented by:

1. Verification that funds have been in donor account for a minimum of 60 days (seasoning). This may require provision of one or more bank statement(s).
2. Verification that funds have been transferred into the applicant’s bank account. This may require copies of deposit and withdrawal slips, and bank statements from the borrower showing the funds are currently in the account.

A – Name of Donor
B – Amount being gifted
C – Name of applicant(s)
D – Relation to A
E – Address of property being purchased
F – Date gift is being given
G – Name of Lender
H – Originating Financial Institution for gift funds
I – Address of Originating Financial Institution
J – Account number for Originating Source
K – Signature of Donor
L – Telephone Number for Donor
M – Address of Donor
N – Signature of Applicant(s)