Gift Letter for Home Purchase (Format & Sample)

Buying a house is a top priority for many people. However, not everyone can afford to purchase a house or make a down payment without some help. This is where a gift letter comes in. A gift letter is a form from a donor stating that the funds given to someone are gift and don’t need to be repaid. It assures the mortgage lender or seller that the recipient is not in debt.

Before drafting a gift letter, you should confirm the requirements with the lender or house seller. Find out what information they need and include it in the letter. Here is everything you need to know to draft an effective Gift Letter for Home Purchase

The home seller will likely reject an incomplete and poorly written gift letter. To avoid such inconveniences, make sure your letter contains the following elements:

  • Your name, address, and contact information as the giver
  • The recipient’s name
  • Your relationship with the recipient
  • The exact gift amount in dollars
  • The purpose of the gift
  • The address of the property being purchased
  • A statement affirming that no payment is expected

Writing Tips for a Gift Letter for Home Purchase

A gift letter is a formal and, sometimes, legal document. Therefore, it should be drafted with the utmost care. The following pointers should help you come up with a professional Gift Letter for Home Purchase:

  • Provide your identity – State your name, address, and contact information at the beginning of the letter. This will help legitimize the gift letter
  • Mention your relationship with the recipient – Depending on your state laws, only certain people can offer a gift. In most cases, this is usually a close friend or relative of the recipient. Make this clear in the first paragraph.
  • State the amount – Mention the exact gift amount in dollars, so the reader knows what their working with. It is advisable to avoid vague terms like ‘a lot of money’ or ‘a handsome sum.’
  • State its purpose – Explain what the gift will be used for. In this case, mention that it will be applied toward the purchase of a house.
  • Confirm that it is a gift – Provide a statement confirming that you do not expect repayment.
  • State the source of the gift – Provide your bank details.
  • Provide your contact information
  • Close with your name and signature

Gift Letter for Home Purchase Format


{Seller’s Name}

{Seller’s Address}

{City, State, Zip Code}

To {Mr./Mrs./Ms. Last Name},

I {your name} intend to make a GIFT of {amount in dollars} to {recipient’s name}. {Recipient’s name} is my {state nature of relationship e.g., son, niece, etc.}. The amount is to be applied toward the purchase of a house located in {property address}.

The source of this gift is {bank/investment/account name}. I do not expect any payment for this gift in cash or future services. I will also not file any lien against the bought property.

I can be reached at {phone number} or {email address}.

{Your Name}

{Your Signature}

Sample Gift Letter for Home Purchase

17 September 2030

Anderson Properties

123 Gold Boulevard

Los Angeles, CA 56789

To Mr. Anderson,

I, Mary Higgins, intend to gift my son James Higgins with a $15,000 on 19 September 2030. The amount will be applied towards the purchase of property on 123 Gold Boulevard.

I certify that this payment is a gift. Mr. Higgins is under no obligation, either implied or expressed, to repay it. I will also not file a lien against said property.

The offered amount will be paid from California National Bank account number 3456899. I have attached documentation to prove this transaction.

If you have any concerns, you can reach me at


Mary Higgins

Gift Letter for Home Purchase (Word Template)

File Format
  • MS Word

Wrapping Up

Without a gift letter, a lender or bank could deny your loan application. This is because they might consider your gift money a loan that could put you deeper into debt. A house seller could also reject your bid. This is why you should always finalize a gift letter when you receive money from a friend, relative, or organization.

When drafting a Gift Letter for Home Purchase, consult with the recipient to determine what information they need to be included. Get straight to the point and avoid any lengthy narrations. It is also essential that you mention that you do not expect any repayment for the funds given.

Finally, always legitimize a gift letter by including your official name, signature, and letterhead when necessary.