If you're buying a home in the United States and a family member or close friend is helping with the down payment, lenders almost always require a properly written gift letter for mortgage. As a former mortgage loan officer and real estate attorney drafter with over 12 years creating these documents for clients nationwide, I've helped thousands avoid last-minute closing delays caused by incomplete or incorrect gift letters.
In this comprehensive guide, you'll get my battle-tested free printable gift letter template that meets current 2025 Fannie Mae, Freddie Mac, FHA, VA, and USDA guidelines. I'll also share real gift money letter samples, explain exactly what mortgage underwriters look for, and give you both PDF and Word versions at no cost.
A sample gift letter for mortgage is a signed document from the gift donor stating that the money given toward your home purchase is a true gift — not a loan that must be repaid. According to IRS rules and lender requirements, any large deposit in your bank account during the 60-day seasoning period must be "sourced and seasoned." Without proper documentation, underwriters will treat the funds as a loan, which dramatically changes your debt-to-income ratio and can kill your approval.
I’ve seen deals fall apart the day before closing because the donor wrote “Love you – pay me back when you can” in the memo line. A proper gift letter template for mortgage prevents that nightmare.
| Loan Type | Who Can Gift | Minimum Donor Documentation | Max Gift Allowed |
|---|---|---|---|
| Conventional (Fannie Mae/Freddie Mac) | Relative, fiancé(e), domestic partner, or close friend with clearly documented relationship | Gift letter + proof of transfer (bank statements or wire) | 100% of down payment if LTV ≤80%; otherwise 3-5% buyer contribution required |
| FHA | Family member, employer, labor union, charitable organization, or close friend | Gift letter + evidence funds came from donor’s account | 100% allowed |
| VA | Almost anyone (no blood relation required) | Gift letter required; no seasoning of gift funds | 100% allowed |
| USDA | Relative or close personal friend | Same as conventional | 100% allowed |
Click below for my completely free, attorney-reviewed mortgage gift letter template:
Download Gift Letter Template – PDF Version
Download Gift Letter Template – Editable Word Version
Here is my most popular sample gift letter for home purchase that I personally update every year:
[Gift Donor’s Full Name]
[Donor’s Address]
[City, State, ZIP]
[Date]
To Whom It May Concern:
I/We [Donor’s Name(s)] hereby certify the following:
The gifted funds were transferred via [check #____ / wire transfer / ACH] on [date] from my/our account ending in XXXX to the recipient’s account ending in XXXX.
I/We understand that this gift letter may be relied upon by the mortgage lender and that any misrepresentation may result in civil liability or criminal penalties.
Sincerely,
_______________________________ _______________________________
Signature of Donor Signature of Co-Donor (if applicable)
Printed Name: [Full Name] Printed Name: [Full Name]
Phone: [Best Contact Number] Phone: [Best Contact Number]
Here’s a completed sample gift letter to family member I just used for a client in California last month:
John and Mary Smith
123 Oak Lane, Denver, CO 80206
November 10, 2025
To Whom It May Concern:
We are gifting $75,000 to our son, Michael Smith, toward the down payment and closing costs for his primary residence purchase at 456 Pine Street, Austin, TX 78701.
These funds are an outright gift with no repayment expected. The money came from our Wells Fargo savings account ending in 9876 and was wired on November 8, 2025.
Our relationship: Parents.
Sincerely,
[Signed] John Smith / Mary Smith
Fannie Mae Form 1003 instructions and Selling Guide B3-4.3-04 explicitly state the letter must include:
Source: Fannie Mae Selling Guide and B3-4.3-04
The annual gift tax exclusion is $18,000 per donor per recipient ($36,000 if married filing jointly). Gifts for home down payments almost never trigger gift tax filing because of the lifetime exemption ($13.61 million in 2025), but donors receiving over $18,000 should still file Form 709 if required.
Source: IRS.gov Gift Tax Page and Publication 709
Can I use the same gift letter for multiple lenders?
Yes – just change “To Whom It May Concern” to the specific lender if requested.
Does the donor need to provide bank statements?
Yes, almost always. Expect to show the donor’s statement proving the funds left their account and the borrower’s statement showing receipt.
Can a gift be used for closing costs and reserves too?
Absolutely – many borrowers use gift funds for closing costs, prepaids, and even interest rate buydowns.
What if the gift is coming after we go under contract?
That’s fine. Just update the letter with the exact amount once transferred.
A perfect gift letter for mortgage down payment is one of the simplest documents in real estate — yet it causes more delays than almost anything else. Use my free template above, double-check the relationship wording for your loan type, and have the donor keep copies of everything. You’ll sail through underwriting.
Disclaimer: This article and the free gift letter template provided are for informational purposes only and do not constitute legal or tax advice. Always consult a licensed attorney, CPA, or your mortgage professional for your specific situation.