A gift letter is an important, formal, legal piece of documentation that can help explain that a (usually rather large) sum of money was gifted to you. 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.Hi, I'm new to this but need advice. My parents have given me and my brother a substantial cash gift. If you use gifted funds toward your home purchase, your mortgage lender will need a gift letter to explain that the money is not a loan. 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. This document offers formal proof that the gift wasn't a loan, so the person giving the item can't demand its return, payments, or compensation. Transfer property or money to someone with our revocable or irrevocable Gift Deed template. It's tailored to your state's laws. Check out our gift letter for mortgage template selection for the very best in unique or custom, handmade pieces from our templates shops.