Gift Letter For Mortgage Down Payment. Your down payment can be a small amount, or you can put down 20% or more and avoid added expenses like private mortgage insurance and potentially land a low interest rate. This letter does not need to be lengthy or overly formal, but it must contain certain elements at a minimum.
A gift letter for a mortgage down payment is a written statement that the funds are a gift with no expectation of repayment. A gift letter documents money or “gift funds” given to a homebuyer by a partner or family member to be used for a down payment on a home. Requirements for using a gift letter template.
If you’re using gift money as part or all of your down payment, you’ll need your dad to write a gift letter to the mortgage company that makes it clear that the money is a gift and not a loan.
A gift letter for a mortgage down payment is a written statement that the funds are a gift with no expectation of repayment. What is a gift letter for a mortgage down payment? What information is included in a gift letter? The gift letter may allow the donor to avoid paying a hefty federal gift tax on the transfer.