The letter must explain who is gifting the money, where the donor's funds are coming from and the relationship between the donor and the recipient. Learn how to create a mortgage gift letter template to ensure a smooth homebuying process with your gifted funds with 6 samples.A gift letter is an important, formal, legal piece of documentation that can help explain that a (usually rather large) sum of money was gifted to you. The goal of a gift letter is to provide the lender with proof of where the funds came from. The person gifting the vehicle must complete a sales tax exemption form (MVU-24). A mortgage gift letter is a document that helps satisfy the requirement that a borrower's down payment funds come from legitimate sources. To use gift funds, you must provide a gift letter proving the money is not a loan. A gift letter is proof to the lender that the funds were gifted to a homebuyer for their home purchase, and not a loan or borrowed money. Often your mortgage originator will provide a gift letter template. Fill out the application and send to Avi Glaser with a pre-approval letter.