Cash gifts from others can be used toward a down payment or home purchase. In order for a cash gift to be eligible, mortgage lenders require a gift letter that specifies the amount of the gift, its ...

A gift letter for a mortgage verifies the source of a homebuyer's gifted down payment funds. The gift letter proves that the funds are in fact a gift and don’t have to be repaid, and that the giver ...

When you buy a home with a mortgage and use a gift of cash or equity toward that purchase, you need to get a gift letter from the donor. A gift letter documents where the gift comes from and confirms ...

Matt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture.

Yes, you can receive (or give) gift money to buy a house — if you follow these rules. Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not ...

Let's say you're ready to buy your first home — and take advantage of mortgage rates that are finally starting to drop — but your bank account isn't. If you don't have the down payment money, loved ...

Q. A relative needed help with the down payment on a home, so I gave him $25,000. I signed a gift letter to the lender. Shortly after the home closed, a different relative paid me back the $25,000.

A gift letter for a mortgage confirms that some or all of the borrower’s down payment money is a gift that doesn’t need to be repaid and that the giver isn’t involved in the purchase or ownership of ...