How to write a Gift of Equity Letter?


You could write a Gift of Equity Letter or use a Gift of Equity Letter form. Gift of Equity Letter form might be possible to download from MortgageQnA's Forms section. If not available yet, download a Gift of Equity letter sample from the web - they are available free of charge - and ask your attorney whether any modifications are necessary. 

Also, you could always handwrite the following:

Gift of Equity Letter

To whom it may concern, [or name of closing attorney or mortgage lender]

[Here, state the purpose of the letter - I (full name of seller) am giving my (daughter, son, whatever relationship between donor and recipient), (name of relative), a gift of ($XX,XXX) to be used toward home purchase.]

[State explicitly that the gift is not to be repaid].


(Name of seller/donor)

Put a date and sign it. This type of Gift of Equity letter should work in most of the cases but some lenders may not accept it. Using a Gift of Equity Letter Form in detailed format is recommended.

Also, there are certain tax issues, associated with gifts. Contact a tax professional to make sure this is done properly.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: