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Yes: lenders routinely accept faxed mortgage gift letters, as long as the letter arrives with the supporting paper trail that proves the money is really a gift. A gift letter states the donor's name and relationship to you, the dollar amount, the property address, and that no repayment is expected, with signatures from donor and recipient. Confirm the lender's current fax number first, because loan-officer fax numbers change often.
The underwriter is answering one question: is this money a gift or a secret loan? Every element of the letter serves that question.
| Element | What to write | Why the underwriter needs it |
|---|---|---|
| Donor identity | Full legal name, address, and phone number | Proves a real person stands behind the money |
| Relationship | Parent, sibling, or other family tie to the borrower | Most loan programs only allow gifts from family or defined parties |
| Amount | The exact figure, in words and numbers | Must match the deposit that appears in your bank statements |
| Property address | The home being purchased | Ties the gift to this specific mortgage, not a general handout |
| No-repayment statement | "This is a gift; no repayment is expected or required" | A loan disguised as a gift changes your debt-to-income ratio |
| Signatures and date | Both donor and recipient sign and date it | Shows both sides agree on what the money is |
Ask your lender whether they have their own gift-letter template before you write one. Many do, and a lender's form sails through underwriting faster than a home-made letter that omits one of the elements above. This applies in Canada too, where lenders call the document the same thing and ask for the same contents.
The letter is a claim; the bank statements are the evidence. The underwriter wants to see the money leave the donor's account and land in yours, with amounts that match the letter to the dollar. Fax the gift letter together with the donor's bank statement showing the withdrawal and your statement showing the deposit, so the underwriter sees the whole chain in one packet. A gift letter faxed alone, with statements promised later, is the most common reason these get kicked back.
Watch the timing as well. A large deposit that appears in your account without documentation triggers what underwriters call a large-deposit question, and you cannot answer it retroactively as easily as you can document it up front. Get the letter signed and the statements ready before the money moves, not after.
Confirm the fax number the day you send. Loan officers change desks, teams, and fax numbers constantly, and a gift letter faxed to last month's number sits in a dead tray while your closing date approaches. After sending, call or email to confirm the packet arrived complete: fax machines occasionally drop the last page, and the last page is often the signature page.
Send the pages in a sensible order: cover sheet, gift letter, donor's statement, your statement. Number the pages ("1 of 5") on the cover sheet so the recipient notices if one went missing. If the statements are long, fax only the pages that show the gift transfer, with the account holder's name and the statement date visible on each.
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