Downpayment Tips!

When you’re buying a home, the down payment is calculated as a percentage of the total purchase price. The higher the price, the higher the down payment.

WHAT IS A GIFT LETTER FOR A MORTGAGE DOWN PAYMENT?

When you use gift funds, your lender may require you to provide a gift letter. A gift letter for a down payment is a written statement explaining who is gifting the money, where the funds are coming from, and what the relationship is between the donor and recipient.

A gift letter must include the following:

• Donor’s name and contact information
• Disclosure of the relationship between donor and recipient
• The exact dollar amount of the gift
• Address of the property being purchased
• Date of the gift money transfer
• Donor’s bank, account number, and type of account
• A statement from the donor saying repayment isn’t expected
• Signatures of both the donor and recipient 

If you need to provide additional information with your gift letter, your lender will let you know what you need.