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.The purpose of this letter is to document that the money does not need to be repaid as well as the donor's name, contract information, and relationship to you. A gift letter for a mortgage shows your lender that you don't need to repay gift money toward your down payment. You can use gifted funds to make a down payment, but your mortgage lender will want to know some details before they allow you to use it. Discover how to effectively use gift money for a down payment on a home. Learn valuable tips and considerations for leveraging gift funds. It states how much you're getting and from whom. 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.