Asset: Gift Letters

A gift letter is a written statement provided by a donor to a homebuyer, confirming that a financial gift is being given to assist with the home purchase. Lenders often require gift letters to ensure transparency and verify that the down payment or closing costs are not borrowed funds.

Context: Identifying the document.

1. Gift letter title

2. Gift verbiage

Key takeaways: Important information.

1. Gift amount

2. Borrower’s name

3. Subject property address

4. Source of funds information

5. Donor’s relationship with borrower

6. Donor’s information

7. Donor’s signature