Gift letter template
The generator above is your gift letter template. Fill in the fields and it puts in every clause a lender looks for: the gift amount, the donor's name, address, phone, and email, the donor's relationship to the borrower, the recipient, the property, the source of the funds, the transfer date, and the explicit statement that no repayment is expected. Copy the text into your lender's portal, or download a PDF to sign.
Sample gift letter for a mortgage
Here is a filled-in sample so you can see the format before you generate your own. A completed mortgage gift letter reads like this:
June 7, 2026
To Whom It May Concern:
I, Robert A. Smith, am gifting $25,000 to my daughter, Jennifer Smith, to be applied toward her purchase of the property at 456 Maple Avenue, Springfield, IL 62704. The source of these funds is my account at First National Bank ending in 4821, transferred on June 5, 2026.
This is a bona fide gift. There is no obligation, expressed or implied, to repay this gift in cash, services, or otherwise, now or in the future. No part of this gift came from any party with an interest in the sale of the property.
Donor: Robert A. Smith · 123 Oak Street, Springfield, IL 62704 · (555) 123-4567 · robert@email.com · Relationship: parent
Signature: __________________________ Date: ____________
Example gift letter - what each part does
An example gift letter has to do three jobs at once: identify the donor and the money, tie the gift to the borrower and (usually) the property, and remove any doubt that it must be repaid. The no-repayment line is the part underwriters care about most. A loan dressed up as a gift changes the borrower's debt-to-income ratio, and the letter rules that out.
Gift letter form & what lenders require
Most lenders accept a typed gift letter on no special form, as long as it contains the required elements. For a gift letter for a home loan - whether a gift letter for a mortgage loan that's conventional, FHA, or VA - underwriters generally expect:
- The donor's full name, address, phone, and email.
- The donor's relationship to the borrower (FHA and VA limit eligible donors to family and a few defined parties).
- The exact dollar amount of the gift.
- A clear statement that no repayment is expected.
- Often the property address and the source account, plus the donor's signature and date.
Gift letter format
The standard gift letter format is a short, signed letter, not a contract. Keep it to one page, address it to the lender or "To Whom It May Concern," state the facts, and sign it. The generator writes it in that format. Copy the text or download a PDF.
Is a down-payment gift taxable? Not to the recipient. Gifts are never income. The giver may need to file IRS Form 709 if the gift to one person tops the annual exclusion ($19,000 per recipient in 2026; $38,000 from a married couple), but that almost never means tax owed. Nothing is due until the ~$15M lifetime exemption is used up. Run the numbers with the free Gift Tax Calculator.
Frequently asked
What is a gift letter?
A gift letter is a signed statement from someone giving a homebuyer money toward a down payment, confirming the funds are a genuine gift with no expectation of repayment. Mortgage lenders require it so the gift isn't counted as a loan that would raise the borrower's debt.
How much can my parents gift for a down payment?
There's no limit on what they can give toward a down payment. For gift-tax purposes, each parent can give up to $19,000 per recipient in 2026 ($38,000 as a couple) before they have to file a Form 709. No tax is due until the ~$15M lifetime exemption is used up.
Is a down-payment gift taxable?
Not to the person receiving it. Gifts aren't income. The giver may have to file Form 709 if a gift tops the annual exclusion, but filing rarely means tax is owed. It just records the amount against the lifetime exemption.
This generator provides a general template, not legal, tax, or lending advice, and does not create an attorney-client relationship. Lender requirements vary; confirm the exact wording your lender needs and verify current IRS figures before relying on them.