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. What should the gift letter include?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. The letter also must indicate that the money is a gift and that there is no expectation of repayment. The purpose of the gift letter template is to clearly identify that the money for the down payment is a gift and that the donor does not need to be repaid. Gifts from relatives and domestic partners are an acceptable source for both down payment and closing costs when financing a primary residence or vacation home. If their gift is too large, they may have to fill out a gift tax form when filing returns. Since this money is for a down payment, the loan officer may also need you to fill out a gift letter detailing the gift. Keep in mind, the amount of the transfer must match what's stated in the gift letter. FHA loan gift funds.