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. 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.A gift letter for a mortgage shows your lender that you don't need to repay gift money toward your down payment. A gift letter is a document certifying that your family member is giving you money to cover all or a portion of your down payment or closing costs. A gift letter is a letter stating that money you receive from a friend or family member is in fact a gift, not a loan. Download the following gift letter template. Then, complete, e-sign, and send it to the lender. A gift letter is a note from a donor to your lender regarding cash funds for your mortgage down payment. Use these stepbystep instructions for accepting a cash downpayment gift on a home, including a readytouse mortgage gift letter template. Additionally, the donor and the recipient agree that the gift does not have to be repaid.