Writing a Good Gift Letter

by Keith Landis on September 2, 2010

If they have a generous relative, gift funds can allow a prospective home buyer to purchase a property without tapping into their own bank account.  Whenever my clients are receiving gift funds I find it is best to let them know exactly what an underwriter wants to see on the gift letter.

A Gift Letter Should Include the Following:
1) The dollar amount
2) Name of the donor
3) The donor’s signature
4) Address
5) Telephone number,
6) Relationship to the borrower (must be a direct relative)
7) The borrower must be named
8) The borrower’s signature(s)
9) The letter must state that no repayment is required
10) Include language asserting that the funds were not made available to the donor from any person or entity with an interest in the sale of the property.

 

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