Down Payment Gift Letter Sample

Are you in search of a Down Payment Gift Letter Sample for your upcoming real estate transaction? Look no further! Below, you will find examples of Down Payment Gift Letter Samples that you can easily modify to suit your needs.

Explaining the Need for a Down Payment Gift Letter Sample

When purchasing a home, some buyers may receive financial assistance from family or friends in the form of a gift to help cover the down payment. In such cases, lenders typically require a Down Payment Gift Letter to ensure that the funds are indeed a gift and not a loan that could affect the buyer’s financial situation. This letter serves as documentation of the gift and helps lenders verify the source of the funds.

Provides evidence that the funds are a gift and not a loan
Helps lenders verify the source of the funds
May be required by lenders when receiving financial assistance for a down payment

Read : Parts Of Application Letter Sample

Example of Down Payment Gift Letter Sample:

Dear [Recipient’s Name],

I am writing this letter to confirm that the $10,000 I am providing to [Homebuyer’s Name] as a gift is to be used towards the down payment for their new home. There are no expectations of repayment for this gift, and it is given freely to help [Homebuyer’s Name] achieve their goal of homeownership.

As per the requirements of the lender, I am including a copy of my bank statement showing the source of the funds. I understand that this gift cannot be repaid or counted towards the loan amount and that it is solely for the purpose of assisting with the down payment.

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Sincerely,
[Your Name]