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My parents gave me the money to buy the house and helped with the down payment. Now my lender says I need a “gift letter” – what is that?

April 26, 2017buy down payment gave helped House Lender money Parents

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My parents gave me the money to buy the house and helped with the down payment. Now my lender says I need a “gift letter” – what is that?

1 Answer

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Lenders will allow a certain amount of money to come from other sources other than personal bank accounts, savings, etc. (parents for example) however the lender needs assurance that this money is truly a gift that does not have to be paid back. A “gift letter” will confirm this.