Fill Out Your Gift Letter Form Make My Gift Letter Online

Fill Out Your Gift Letter Form

The Gift Letter form is a document used to confirm that a monetary gift has been given to a borrower, typically in the context of securing a mortgage. This form serves as proof that the funds do not need to be repaid, which can significantly impact the borrower’s financial profile. Understanding the importance of this form can simplify the home-buying process for many individuals.

Form Sample

GIFT LETTER

Applicant(s):

Loan Number:

I,

 

 

, do hereby certify the following:

 

(Donor)

 

 

 

(1) I have made a gift of $

 

to

 

 

 

(Amount)

 

 

(Recipient)

 

Whose relationship is:

 

 

 

 

 

 

(Relationship)

 

 

 

(2) This gift is to be applied toward the purchase of the property located at:

(Property Address)

(3)No repayment of the gift is expected or implied in the form of cash or by future services of the recipient.

(4)The funds given to the homebuyer were not made available to the donor from any person or entity with an interest in the sale of the property including the seller, real estate agent or broker, builder, loan officer, or any entity associated with them.

(5)The source of this gift is:

(Source)

Donor Signature

Date

Borrower Signature

 

 

 

 

Donor Name (Print or Type)

 

 

Borrower Signature

 

 

 

 

Donor Address

 

 

 

(

)

 

 

 

Donor Phone Number

WARNING: Our signatures above indicate that we fully understand that it is a Federal Crime punishable by fine, imprisonment, or both to knowingly make any false statement concerning any of the above facts as applicable under the provision of Title 18, United States Code, Section 1012 and 1014.

Attachments:

1.Evidence of Donor's Ability to Provide Funds.

2.Evidence of Receipt of Transfer of Funds.

Calyx Form - giftlttr.frm (05/02)

Misconceptions

Understanding the Gift Letter form can be confusing. Here are ten common misconceptions about this important document.

  1. Gift letters are only for large sums of money. Many people think gift letters are only necessary for significant financial gifts. However, any monetary gift that impacts a loan application may require a letter.
  2. Only family members can give gifts. While gifts from family are common, friends and other individuals can also provide financial assistance. A gift letter can be used in these cases as well.
  3. A gift letter is the same as a loan agreement. This is not true. A gift letter confirms that the money given is a gift and not a loan, which means it does not need to be repaid.
  4. You don’t need to document small gifts. Even small gifts may require documentation, especially if they are part of a larger financial transaction, like a home purchase.
  5. Gift letters are only needed for home purchases. While they are often associated with real estate transactions, gift letters can be necessary for any situation where a financial gift impacts a loan.
  6. There is no specific format for a gift letter. While there is no official template, a well-structured gift letter should include key information to be valid and effective.
  7. Gift letters can be verbal. A verbal agreement is not sufficient. A written gift letter is essential to provide clear evidence of the gift.
  8. Once a gift letter is signed, it cannot be changed. Changes can be made, but both the giver and receiver should agree to any modifications and re-sign the document.
  9. Gift letters are only for first-time homebuyers. This is a misconception. Anyone receiving a gift for a down payment may need a gift letter, regardless of their home-buying history.
  10. Gift letters are only required in certain states. Gift letters are relevant nationwide. Lenders may require them regardless of state laws, especially when assessing financial stability.

Being informed about these misconceptions can help you navigate the process of using a Gift Letter effectively.

Key takeaways

When filling out a Gift Letter form, it's important to keep several key points in mind. Here are some essential takeaways:

  1. Clearly state the relationship: Indicate your relationship with the recipient. This helps establish the legitimacy of the gift.
  2. Specify the amount: Clearly mention the dollar amount being gifted. Transparency is crucial for both parties.
  3. Confirm it’s a gift: State that the funds are a gift and do not require repayment. This distinction is vital for tax purposes.
  4. Include your contact information: Provide your phone number and email address. This allows for easy communication if needed.
  5. Sign and date the letter: Your signature and the date validate the document. Without these, the letter may not hold weight.
  6. Consider notarization: While not always necessary, having the letter notarized can add an extra layer of authenticity.
  7. Keep a copy for your records: Always retain a copy of the letter for your own documentation. This can be helpful for future reference.

By following these guidelines, you can ensure that your Gift Letter is properly filled out and serves its intended purpose effectively.

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