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Down Payment Gift Letter BORROWER(S) INFORMATION This letter confirms that the funds provided are a gift and not borrowed funds that require repayment. Amount of Gift: $ Recipient of Gift: Mortgage
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How to fill out down payment gift letter
How to fill out a down payment gift letter:
01
Start by addressing the letter to the mortgage lender or the recipient of the gift funds. Include their name, address, and any other required contact details.
02
Include a brief introduction explaining the purpose of the letter. State that the letter is a formal declaration of a gift and that it will be used towards the down payment for a home purchase.
03
Clearly state the amount of the gift that you are giving. Be specific and include both the numerical value and the written amount.
04
Provide details about the source of the gift. Mention if it is coming from your personal savings, a family member, or any other legitimate source. If it is a family member, provide their name and relationship to you.
05
State that the gift is a true and unconditional gift and does not need to be repaid. Confirm that there are no restrictions or conditions attached to the gift.
06
Include a statement acknowledging that the funds will be used solely for the purpose of the down payment and that they will not be used for any other expenses.
07
Sign and date the letter. If necessary, have the letter notarized for additional credibility.
Who needs a down payment gift letter:
01
Individuals who are receiving a gift from a family member or other individual to be used towards their down payment for a home purchase may require a down payment gift letter.
02
Lenders often require a down payment gift letter to confirm that the funds being used for the down payment are a gift and not a loan.
03
Homebuyers who are using gift funds for their down payment may need to provide a down payment gift letter as part of their mortgage application process.
Remember, it is important to consult with your mortgage lender or financial advisor for specific guidance on filling out a down payment gift letter as requirements may vary.
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What is down payment gift letter?
A down payment gift letter is a document that confirms that the funds used for a down payment on a home were given as a gift and not a loan.
Who is required to file down payment gift letter?
Both the donor giving the gift and the homebuyer receiving the gift are typically required to file a down payment gift letter.
How to fill out down payment gift letter?
To fill out a down payment gift letter, include the donor's information, the recipient's information, the gift amount, the relationship between the donor and recipient, and a statement confirming that the gift is not a loan.
What is the purpose of down payment gift letter?
The purpose of a down payment gift letter is to provide documentation that the funds used for a down payment were a true gift and not a loan that will need to be repaid.
What information must be reported on down payment gift letter?
The down payment gift letter should include the name and contact information of the donor and recipient, the gift amount, the date the gift was given, the purpose of the gift, and a statement confirming that the gift is not a loan.
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