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.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. Description: City officers and employees who work in the executive and administrative branches can use this form letter when returning gifts. Here's a sample gift letter you can use to prove that the money is truly meant as an outright gift, with no expectation of repayment. If you're looking to use a gift letter from your family to fund a down payment, make sure you have the legal documentation necessary. The letter should state that the gift is intended to help the borrower make a down payment and that the donor has no expectation of repayment. In most cases, documentation in the form of a gift letter will be required. While it's possible that no one claims on it, it's best to prepare for any legal issues in the future.