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 a note from a donor to your lender regarding cash funds for your mortgage down payment.A gift letter for a mortgage is a written document that clearly indicates that you're receiving a gift for a down payment of your home, or a gift of equity. 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. 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. If you use a gift payment, you'll need a gift letter for the mortgage if the gift is made within three months of the closing. Note that a gift letter isn't a promissory note. A gift letter from the donor to the recipient, detailing the amount gifted and its intended purpose. Remember, this has to be a genuine gift, with no expectation of repayment. Gift Letter: Your donor will need to provide a gift letter.