When writing a gift letter, a person should include a heading, some personal information about the donor, information about the amount of the transfer, a statement from the donor and some closing details. The exact format required for a gift letter varies by lender. People write gift letters to show lenders that friends or family members have gifted, rather than loaned them money for buying a home.
Writing a gift letter involves the following process:
- Write the heading The letter should start with the current date and then be addressed to the lender, including both the lender's name and physical address.
- Include information about the donor and donation The writer should include information about how the donor is related to him or her, such as whether the donor is a friend or family member. Then, the writer should tell how much the gift amount is, the source and when the transfer occurred.
- Include the donor statement The donor should write a statement attesting that there will be no repayment of the gift funds expected. The donor should also attest that there won't be a lien against the property. This information will be included in the body of the letter.
- Include a closing The person writing the letter should sign it and then print his or her name. The donor should then include the property address for the expected purchase. Include the name and physical address of the donor as well as their telephone number.