Gift Fund Documentation Wizard

Can your donor help — and what do you need to document?

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Verdict

Allowed

Gift covers 50% of the down payment. Borrower contribution: $25,000.

Key rules

  • •Funds do not need to be "seasoned" if the gift letter and paper trail are clean.

Documentation checklist

  1. 1Gift letter signed by donor (relationship, amount, address, "no repayment expected" statement)
  2. 2Donor bank statement(s) showing the funds
  3. 3Paper trail: copy of donor check or wire transfer
  4. 4Borrower deposit slip / bank statement showing receipt
The gift letter must say: donor name, address, phone, relationship to borrower, dollar amount, date of gift, address of property being purchased, and explicit statement that no repayment is expected or required. Signed by the donor. A loan disguised as a gift is mortgage fraud and the lender will check.