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saving enough money to use as a downpayment to purchase a home is no easy task especially if you are buying for the first time most lenders allow gifted funds to be used as down payments but there are some restrictions typically downpayment gifts can only come from a relative and the property being purchased must be the primary residence for the buyers lenders also typically require that the donor and the recipient both sign a mortgage gift letter this letter must contain the name address and phone number of the donor the relationship of the donor to the recipient the amount of the gift and the data was given a statement that the money was a gift and not alone and the address of the property being purchased in addition many lenders require a paper trail of funds from the donor to the recipient including copies of the donors bank statements that include the gift amount if you receive a gift you are not required to report it as income but the gift giver is responsible for paying any tax
