A gift letter for a mortgage shows your lender that you don't need to repay gift money toward your down payment. Use our mortgage gift letterThe 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. Pin down the specifics of the property in question. Clearly state the property's address, ensuring there's no ambiguity about where the gift funds are intended. LMCU will provide a form that the donor will need to complete and sign. The most important document required is a gift letter. If you use your gift money for your down payment, you donor must write a gift letter to the lender explaining clearly that the money is a gift and not a loan. Mortgage Gift letter is what the donor of the gift writes to the lender stating that he has offered a gift of money to the home buyer. The purpose of a gift letter is simply so the lender can ensure you won't have to repay the money you've received for the down payment.