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. 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.Use these stepbystep instructions for accepting a cash downpayment gift on a home, including a readytouse mortgage gift letter template. 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. It states how much you're getting and from whom. It states how much you're getting and from whom. A gift letter is needed to affirm a gift of cash is being made to provide a down payment for a homebuyer. We have been advised that you are the donor of a monetary gift to the applicant(s) for the purpose of a home purchase. Please complete Part II below.