Document background
The Relationship To Borrower Gift Letter is a crucial document in U.S. real estate transactions where part of the down payment or closing costs comes from gifted funds. This document is typically required by mortgage lenders to ensure compliance with lending regulations and to verify the legitimate source of funds. It provides essential information about the gift donor's relationship to the borrower, the amount being gifted, and confirmation that the funds are a genuine gift rather than a loan. The letter helps prevent fraud and ensures transparency in property transactions while meeting requirements set by entities such as the FHA, Fannie Mae, and Freddie Mac.
