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. It doesn't have to be a long letter.Use these stepbystep instructions for accepting a cash downpayment gift on a home, including a readytouse mortgage gift letter template. 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. It states how much you're getting and from whom.