Get a Mortgage Gift Letter Template to Declare Donor Funds for Your Account

Are you looking to gift funds to someone who is applying for a mortgage? If yes, then you need a reliable Mortgage Gift Letter Template to keep everything formalized. At BizzLibrary.com, we understand the importance of a well-drafted mortgage gift letter, and therefore we offer a professionally designed template that can be easily customized as per your requirements.

What is a Mortgage Gift Letter?

A mortgage gift letter is a formal document that explains that the borrower is receiving a gift from a donor. The letter identifies the donor, their relationship to the borrower, the amount of the gift, and the source of funds. It is a legal document that the lender requires before approving the mortgage as it ensures that the funds are obtained legally.

Why Is a Mortgage Gift Letter Required?

Lenders have strict requirements when it comes to verifying a borrower's assets to determine their eligibility for a mortgage loan. If the borrower is using gifted funds for their down payment or closing costs, the lender requires a gift letter to prove that the funds were given without any obligations or repayment expectations.

Key Elements in a Mortgage Gift Letter

Our Mortgage Gift Letter Template includes the following key elements:

• Gifter Information: This includes the full name and contact information of the donor making the gift, including their relationship to the borrower.
• Recipient Information: This includes the full name of the borrower who is receiving the gift.
• Gift Amount: This specifies the dollar amount of the gift, the date it was given, and the purpose (down payment or closing costs).
• Source of Funds: This explains where the funds came from to make the gift, such as a bank account, cash, or investment account.
• Statement of Gift: A declaration of the gift is included in the letter, stating that the funds are a gift and do not require repayment from the borrower.

How to Use Our Mortgage Gift Letter Template

Our Mortgage Gift Letter Template is available in PDF format and can be easily downloaded from our website. Once you've downloaded the template, simply customize it by filling in the required details and have it signed by both the gifter and recipient. We recommend that you keep a copy of the signed letter for your personal records.

Visit BizzLibrary.com now to download our Mortgage Gift Letter Template and other helpful templates and documents that will help you in your personal and professional life.