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. 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.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. A short letter like this sample gift letter will cover all of the requirements your lender needs. The lender will need a "gift letter" from the donor to make sure your down payment help has no strings attached. A gift letter is a document that certifies the funds you're receiving for your down payment are a gift, not a loan. Additionally, NHD Down Payment and Closing Cost Loan Program mortgages CANNOT be originated under MERS.