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. Mortgage Gift letter is what the donor of the gift writes to the lender stating that he has offered a gift of money to the home buyer.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. 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. Gift Letter For Mortgage Template. Your lender might give you a template to follow if you tell them you're using a gift for your down payment.