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. It states how much you're getting and from whom.Understand what a gift letter is, why you need it for a mortgage, and how to write one effectively to get your home purchase approved. We can define a gift letter as a legal statement that ensures your bank or lender that the funds that came into your bank account are a gift rather than a loan. Filling out a gift letter in OP's case would actually be mortgage fraud. Upvote When you use gift funds, you have to provide a gift letter that proves the funds are not a loan to be repaid. How do their relative gift the money to the buyer? ( Do they just go to the bank and fill out some gift letter ? State the gift amount clearly. This ensures transparency.