A gift letter is required when a borrower is using gift money as part or all of their down payment on a mortgage. The gift letter requests a statement from the donor confirming that no repayment is expected from the borrower.
Requesting gift letters is now a process that Blend can automate. Automating this process and providing a borrower with a pre-filled gift letter just requiring signature will allow loans to close significantly faster.
1. In the "Getting To Know You" section of the application, the borrower will be asked if any part of the down payment a gift.
2. If the borrower responds with "I haven't received the gift yet" or "I received the gift less than 60 days ago", they will be prompted to enter the gift amount.
The borrower will then be asked to enter the donor's information (including email address). The donor will then receive an email to review and Blend Sign.
Once the donor signs the Gift Letter, the borrower will also then have to sign it to complete the letter.
Example of gift letter:
Supported variations of the gift letter:
Gift letter: (donor's info only)
Gift letter (donor's info and source of funds)
Gift letter (donor's Info, source of funds, and method of transfer)
Co-borrower scenarios
We ask the primary borrower whether there was a gift used towards the transaction.
Borrowers sharing information:
- Blend will prompt both borrowers will sign the gift letter.
Borrowers not sharing information:
- Blend will only prompt the primary borrower to sign the gift letter.
DISCLAIMER: All mentioned features on this page may not be applicable to your institution, please reach out to (support@blend.com) for more information on what features are enabled for your use.
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