A sum of money given to a home buyer as a present
If relatives or a friend give you a helping hand towards your down payment, a lender will require that you complete and sign a form, called a gift letter, proving that the money doesn’t have to be repaid.
A lender will then request a copy of the gift-giver’s bank statements to prove that he/she actually has the sum of money stated in the gift letter. When the funds are transferred into your banking account, you also need to give the lender a receipt of the transaction.
