A gift letter is a note from a donor to your lender regarding cash funds for your mortgage down payment. 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.If there is no clear evidence (like a letter) stating that the money was a gift solely to your husband, the court may consider it as a gift to both of you. Learn why lenders may require a gift letter and the IRS may require a gift tax return when family or friends offer help with a down payment on a home. For the letter to be valid, it must declare that the money you received is a gift with no intention of repayment on the recipient's part. The lender will require the parents to sign a "gift letter" form. However, if the gift or inheritance later produces income, you will need to pay tax on that income. In any event, the donor(s) will have to fill out a form gift letter stating that the money is a gift and not a loan. I agree with my colleagues. If not, write an agreement and make monthly payments.