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. 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.A mortgage gift letter is a statement that assures your lender the money that came into your account is a gift and not a loan. Your parents will need to file the proper forms with IRS declaring the gift. So no potential consequences of gift tax. A gift letter is a note from a donor to your lender regarding cash funds for your mortgage down payment. Here's a sample gift letter you can use to prove that the money is truly meant as an outright gift, with no expectation of repayment. The cover letter should include your name, address, and purpose of the gift in one envelope. Once a gift is given, it is yours and you do not need to give it back. Instructions for completing the Non-Custodial Parent Form will be included in the PROFILE Application.