Why this document matters
When a borrower’s application is submitted and gift funds are utilized to qualify the loan, a gift letter is required to validate the specifics of the gift. It must include the Donor’s name, the gift amount, the Donor’s relationship to the borrower, and the source of the gift. Gift funds can be used for down payment and closing costs, but typically cannot be used for reserves. Without proper gift letter documentation, gift funds may be excluded from qualification, reducing available funds for down payment or closing costs.When this document is requested
This document is requested when:- Gift funds identified in application or asset statements
- Borrower indicates gift funds will be used for loan qualification
- Down payment or closing costs include gift funds
- Underwriting requires validation of gift fund specifics
Required data fields
Loan information fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Loan number | String | Yes | Loan entity | Alphanumeric identifier |
Gift details fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Donor name | String | Yes | User input | Full legal name of donor, repeatable for N donors |
| Gift amount | Number | Yes | User input | Amount in dollars, positive number |
| Recipient name | String | Yes | Borrower entity | Full legal name of gift recipient (borrower) |
| Relationship to recipient | String | Yes | User input | Relationship between donor and recipient (e.g., “Parent”, “Relative”, “Friend”) |
| Property address | String | Yes | Loan entity | Full street address of property being financed |
Certification field
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Certification acknowledgement | Boolean | Yes | User input | Confirms gift is bona fide with no obligation to repay, and documentation will be provided |
Source of funds fields
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Bank name | String | Yes | User input | Name of financial institution where gift funds originate |
| Account number | String | Yes | User input | Account number from which gift will be transferred |
| Date of funds transferred | Date | Conditional | User input | Date funds were or will be transferred, format: MM/DD/YYYY |
Donor signature fields (repeatable up to N times)
| Field Name | Type | Required | Data Source | Notes |
|---|---|---|---|---|
| Donor name | String | Yes | User input | Full legal name of donor signing |
| Donor signature | Signature | Yes | E-signature | Digital signature with timestamp |
| Signature date | Date | Yes | E-signature | Auto-populated on signature |
| Donor phone | String | Yes | User input | Phone number of donor |
| Donor street address | String | Yes | User input | Full street address of donor |
Suggested questions for data collection
| Question | Response Type | Validation |
|---|---|---|
| ”What is the donor’s full legal name?” | Text input | Required, min 2 words, repeat for each donor |
| ”What is the gift amount?” | Number input | Required, positive number, format: currency |
| ”What is the recipient’s full legal name?” | Text input | Auto-populated from borrower entity |
| ”What is the donor’s relationship to the recipient?” | Text input | Required, relationship description (e.g., “Parent”, “Relative”, “Friend”) |
| “What is the property address?” | Text input | Auto-populated from loan entity |
| ”Do you certify that this is a bona fide gift with no obligation to repay, and that documentation will be provided?” | Yes/No | Required, must be Yes |
| ”What is the name of the bank where the gift funds originate?” | Text input | Required, name of financial institution |
| ”What is the account number from which the gift will be transferred?” | Text input | Required, account number |
| ”What is the date the funds were or will be transferred?” | Date | Required, format: MM/DD/YYYY |
| ”Donor #X: What is your full legal name?” | Text input | Required, min 2 words, repeat for each donor |
| ”Donor #X: What is your phone number?” | Text input | Required, valid phone number format |
| ”Donor #X: What is your street address?” | Text input | Required, full street address |
| ”Donor #X: Please sign and date this document” | E-signature | Required, includes timestamp |