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 mortgage gift letter is a document that helps satisfy the requirement that a borrower's down payment funds come from legitimate sources.A gift letter for a mortgage shows your lender that you don't need to repay gift money toward your down payment. The goal of a gift letter is to provide the lender with proof of where the funds came from. 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. If borrowers plan to use gift money, they must request a gift letter from their lenders. In the letter, the donors must specify that the money is a gift. "AmeriSave offers borrowers a standardized gift letter template," says Flynt. The letter should state that the person giving you the money is not getting something of value in return, such as an ownership stake in the property. Your bank needs a written letter to prove that any money gifted to you to help buy a house is in fact a gift, not a loan.