Are government entities required to provide a gift letter?

If a gift is provided by a governmental agency or public entity that has a program providing homeownership assistance to low- or moderate- income families or first-time homebuyers, a gift letter is required.  The gift letter must be signed and dated by the donor and Borrower and include the following:

• the donor’s name, address, and telephone number;
• the donor’s relationship to the Borrower; 
• the dollar amount of the gift; and
• a statement that no repayment is required. 

For additional information see Handbook 4000.1 II.A.4.d.iii(F) and II.A.5.c.iii(F) available at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04155