Earn $25 CASH per qualified ChartSnap Founder referralUnlimited referralsNo purchase required—Join the Affiliate Program →

Mortgage Glossary

Gift Letter

Mike Starr·Reviewed August 2026

A gift letter is a signed document from a donor (typically a family member) stating that money provided to a homebuyer for a down payment or closing costs is a true gift and not a loan requiring repayment. Lenders require gift letters to confirm the funds won't add to the borrower's debt load. The letter typically includes the donor's name, relationship to the borrower, the amount gifted, and confirmation of no repayment obligation.