Free Gift Letter PDF Form Get Document

Free Gift Letter PDF Form

The Gift Letter form is a document used to outline the details of a monetary gift, often required in real estate transactions to clarify that the funds are not a loan. This form helps buyers demonstrate their financial stability to lenders, ensuring a smoother mortgage approval process. If you need to fill out a Gift Letter form, click the button below to get started.

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Outline

When it comes to purchasing a home, many first-time buyers often rely on financial support from family members or friends. This is where the Gift Letter form comes into play, serving as a vital document that outlines the nature of the financial assistance being provided. The form typically includes details such as the donor's name, relationship to the recipient, the amount of the gift, and a statement affirming that the funds are indeed a gift and not a loan. By clarifying these aspects, the Gift Letter helps lenders assess the buyer’s financial situation more accurately, ensuring that the gift does not create any repayment obligations. Additionally, this form can play a crucial role in satisfying the requirements set by mortgage lenders, who often need to verify the source of the funds used for a down payment. Understanding the importance of this document can streamline the home-buying process and provide peace of mind for both the giver and the receiver.

Key takeaways

  • Understand the Purpose: A Gift Letter is used to document financial gifts, often for down payments on homes. This helps lenders verify that the funds are indeed a gift and not a loan.
  • Complete All Sections: Ensure every part of the Gift Letter is filled out accurately. Missing information can delay the approval process.
  • Include Donor Information: The letter must contain the donor's name, address, and contact information to establish their identity and relationship to the recipient.
  • State the Amount: Clearly specify the amount of the gift. This figure should match what is being transferred to avoid confusion.
  • Relationship to Recipient: Describe the relationship between the donor and the recipient. This helps lenders understand the context of the gift.
  • Avoid Repayment Terms: The letter should explicitly state that the gift does not need to be repaid. This is crucial for lenders to determine the nature of the funds.
  • Signature Required: The donor must sign the letter. A handwritten signature adds authenticity and helps validate the gift.
  • Provide Documentation: Attach any necessary documentation, such as bank statements, to prove the donor has the funds available for gifting.
  • Consult with a Professional: If unsure about the process, it’s wise to consult with a mortgage professional or attorney for guidance.

Form Preview Example

GIFT LETTER

Applicant(s):

Loan Number:

I,

 

 

, do hereby certify the following:

 

(Donor)

 

 

 

(1) I have made a gift of $

 

to

 

 

 

(Amount)

 

 

(Recipient)

 

Whose relationship is:

 

 

 

 

 

 

(Relationship)

 

 

 

(2) This gift is to be applied toward the purchase of the property located at:

(Property Address)

(3)No repayment of the gift is expected or implied in the form of cash or by future services of the recipient.

(4)The funds given to the homebuyer were not made available to the donor from any person or entity with an interest in the sale of the property including the seller, real estate agent or broker, builder, loan officer, or any entity associated with them.

(5)The source of this gift is:

(Source)

Donor Signature

Date

Borrower Signature

 

 

 

 

Donor Name (Print or Type)

 

 

Borrower Signature

 

 

 

 

Donor Address

 

 

 

(

)

 

 

 

Donor Phone Number

WARNING: Our signatures above indicate that we fully understand that it is a Federal Crime punishable by fine, imprisonment, or both to knowingly make any false statement concerning any of the above facts as applicable under the provision of Title 18, United States Code, Section 1012 and 1014.

Attachments:

1.Evidence of Donor's Ability to Provide Funds.

2.Evidence of Receipt of Transfer of Funds.

Calyx Form - giftlttr.frm (05/02)