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gift letter

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gift letter

A letter provided to a lender or government agency stating that money to be used as the down payment for a home loan was a gift and not a loan from the donor.



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Be prepared to provide proof of downpayment or a gift letter if required.
If you look at the FHA's fiscal year 2007 HUD actuarial study of the MMIF, she adds, the analysis showing a high concentration of DPA gift letters from 2007 to 2014 shows the FHA as solvent every year and maintaining a 6 percent capitalization ratio--three times its required solvency.
Getting your gift funds at least sixty days in advance has the additional benefit of eliminating the need for a gift letter and other possible documentation from your gift donor.
 
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