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. 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 funds are an excellent option for Consumers who are short of the funds needed to purchase a home. Most loan programs allow for the use of gift funds. 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 gift letter for a mortgage shows your lender that you don't need to repay gift money toward your down payment. Use our mortgage gift letter Generally, if the gift funds are more than a quarter of your income, you should request a gift letter from that person. A gift letter from the donor to the recipient, detailing the amount gifted and its intended purpose. Your mortgage gift letter or others need to include all the basic information so that you don't have to face any problems in the future.