This is a standard gift letter.
How is it completed?
I’d like to show you how it’s supposed to be completed. It is filled out by the gift giver, the donor. It is not filled out by the mortgage borrower. You start out by I, we, the donor, have made a gift of. And you fill in the amount of money that’s been gifted here.
It’s important to note that no repayment is expected or implied, either in the form of cash or services. It’s important for them to know that the gift is truly a gift, and that it is not a loan.
The gift is to be applied towards the purchase of the property located at. Here is where you put the property address that’s being purchased by the borrowers.
The source of funds for the gift is: The bank name, type of account, checking, saving.
If it’s other, maybe you’ve got somebody who’s writing a check to you off of an equity line they have. That would be other and you would explain what that is, account number.
Relationship to borrower, this is usually going to be a family member, so parent, sibling.
Then it’s simply filling in the gift giver or the donor’s name, street address, city, phone number, sign, date, and that’s all there is to a gift.
Then you would also document the paper trail of the gift. Showing the money departing the donor’s account, ie, a bank statement showing the money flowing out of their account to you. And then you would also show a bank statement once the money hits the mortgage borrower’s account to show that the money has been received and cleared into their account. And that’s all there is to the entire gift letter process start to finish.