When writing a gift letter for a mortgage down payment, state that you are not loaning the money but are giving it as a gift, and you do not expect repayment, according to Quicken Loans. Include your name, address and phone number, your relationship to the recipient, the gift amount in dollars and cents and the date you gave the recipient the funds. Include the address of the property the recipient is purchasing, and sign your name.
As of 2015, for loans such as those the Federal Home Administration insures, a donor must give the lender a bank statement and a gift letter, explains Quicken Loans. FHA loans allow home buyers to use gift money for their entire down payment, but they can only use the money for purchasing their primary residences.
The bank statement shows the source of the gift funds and that the donor's funds are sufficient to make the gift, according to MyMortgageInsider.com. When home loan borrowers need gift money letters, loan officers typically give gift letter templates to the borrowers for the donors to use. The mortgage industry refers to monetary gifts for home down payments as seasoned if they are in the recipient's account for 60 days or more. Mortgage lenders consider that seasoned gift money belongs to the recipients, so the letters may be unnecessary.