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 an important, formal, legal piece of documentation that can help explain that a (usually rather large) sum of money was gifted to you.A mortgage gift letter is a document that helps satisfy the requirement that a borrower's down payment funds come from legitimate sources. Yes, all lenders will require a gift letter. Although you may have the funds, the lender needs to confirm that you won't have to repay the gift. The person gifting the vehicle must complete a sales tax exemption form (MVU-24). My mortgage lender had me sign a gift letter saying that the money was a gift that I wasn't going to pay back. Often your mortgage originator will provide a gift letter template. A gift letter for a mortgage is proof to the lender that money you've been given for your home purchase is a gift, not a loan to be repaid. The gift giver may need to provide bank statements from where the funds originated.