Recommend Countersign Gift Affidavit For Free

Yes, a gift letter is legally binding. The information on the letter is used and relied upon by multiple parties, and both the donor and recipient are expected to be bound to the terms of the gift letter.

What is a Gift Affidavit? A Gift Affidavit is a sworn statement that can be used to document the gifting of property. If you've received or given a gift, you might have to prove it wasn't a loan or financial transaction with a Gift Affidavit.

That being said, a monetary gift is only allowed if you can prove it is truly a gift. For that reason, lenders require you to submit a gift letter to verify that the cash you receive is not a loan. If the money is a loan, it changes your debt-to-income ratio, which impacts your ability to qualify for a loan.

I/We [name of gift-giver(s)] intend to make a GIFT of $ [dollar amount of gift] to [name(s) of recipient(s)] , my/our [relationship, such as son or daughter], to be applied toward the purchase of property located at: [address of the house you're buying, if known] .

Confirm the gift with a gifted deposit letter The letter should lay out that the giver has no right to the property. This is known as a gifted deposit letter. This letter proves that you won't have to pay back the money given at a later date.

A gift letter is a formal document proving that money you have received is a gift, not a loan, and that the donor has no expectations for you to pay the money back.

Documentation Requirements The gift letter must: specify the actual or the maximum dollar amount of the gift; include the donor's statement that no repayment is expected; and. indicate the donor's name, address, telephone number, and relationship to the borrower.