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. Here are the top things you need to know when receiving mortgage down payment gift funds.Bonus: download a free gift letter template. A gift letter is a document stating that any money received from family or friends is a cash gift and not a loan. Both the giftgiver and you, the recipient, must sign the mortgage gift letter. Signatures do not need to be notarized. California mainly uses two types of deeds: the "grant deed" and the "quitclaim deed. A mortgage gift letter is a notice from your donor declaring that the down payment funds have been given to you as a gift. Fill in the blank form formatted to comply with all recording and content requirements. • Ask every parishioner to fill out a pledge envelope in the pew.