ClauseryHow to write a gift letter for a mortgage
If someone gives you money towards a home purchase, your lender will usually ask for a gift letter: a signed statement from the giver that the money is a gift, not a loan. It protects the lender, because a hidden loan would add to your debts.
What the letter must say
Lenders that follow Fannie Mae's rules ask the letter to include:
- The amount of the gift, or the most it will be.
- A statement that no repayment is expected, in money or in any other form.
- The donor's name, address and phone number.
- The donor's relationship to the borrower.
Most lenders also want the property address, the date the money was or will be transferred, and both signatures. If the gift will be pooled with the borrower's own money, Fannie Mae also asks the donor to confirm that they have lived with the borrower for the past 12 months and will live in the new home.
Who can give a gift
Usually a relative by blood, marriage or adoption, a spouse or partner, a fiancé, or someone with a long-standing family-like relationship with the buyer. The donor cannot be the seller, builder, developer, real estate agent or anyone else with an interest in the sale. FHA, VA and other loan programs have their own lists, so check with your lender.
How lenders check the money
Expect to show where the gift came from and where it went: a bank statement or wire record from the donor, and a statement showing the deposit into your account, or proof that the money went straight to the closing agent. Large deposits without a paper trail are what slow mortgage approvals down, so move the money in one traceable transfer and keep the records. Never put full account numbers in the letter itself.
Gift tax
In the US the person giving the gift, not the buyer, is responsible for any gift tax. In 2026 each person can give up to $19,000 to any one recipient without filing a gift tax return, so a couple can give $38,000 together. Gifts above that usually just need a return, because they count against a lifetime exemption of $15 million per person in 2026. A tax adviser can confirm the details for your situation.
Free template
The free gift letter template includes each item above, with the transfer date, an optional source bank (never an account number) and the shared residence statement, and builds the letter in your browser. The amount in words converter writes the gift amount in words. Lending to family rather than giving? See how to lend money to family and the promissory note.
General information, not financial, tax or legal advice. Lender requirements and tax limits change; check with your lender and a tax adviser.
Sources
- Fannie Mae Selling Guide B3-4.3-04: Personal Gifts
- IRS: Tax inflation adjustments for tax year 2026 (annual gift exclusion and basic exclusion amount)
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