Gift letter (mortgage)

A signed statement, used in mortgage underwriting, declaring that money helping with a down payment or closing costs is a true gift with no expectation of repayment. It typically names the donor and their relationship to the buyer, the amount, the date, and the property address, and is backed by bank records tracing the donor's withdrawal to the buyer's matching deposit. Lenders require it because a hidden loan would change the borrower's debt picture.