gift letter

Definition

Written proof that down payment money from family is a gift, not a loan, satisfying lenders' paranoia about hidden debts. The documented promise that Mom won't ask for it back.

Example Usage

The lender required a gift letter from her parents stating the $30,000 was truly a gift, not a loan they'd expect repayment on during Thanksgiving dinners.

Origin

Mortgage underwriting requirement formalized as lending standards tightened

Fun Fact

Gift letters must explicitly state that no repayment is expected, though enforcing this after closing is impossible—awkward family dynamics sold separately.

Source: Mortgage lending documentation terminology

Related Terms

Beginner

driving for dollars

The decidedly low-tech practice of cruising neighborhoods looking for distressed, vacant, or neglected properties to target for investment opportunities. It's like Pokemon Go, but instead of catching Pikachu, you're hunting for overgrown lawns and peeling paint.

🏠 Real Estate

Beginner

clear to close

The glorious moment when underwriting has approved all conditions and you're authorized to actually close on the property. It's the green light you've been praying for after weeks of document requests.

🏠 Real Estate

Intermediate

deal fatigue

The emotional and mental exhaustion that sets in during prolonged negotiations, causing parties to make concessions just to end the process. It's why closing dates keep getting extended and everyone starts hating everyone else.

🏠 Real Estate

Intermediate

gazump

The ethically questionable act of accepting a higher offer on a property after already agreeing to sell to someone else but before contracts are signed. It's the real estate equivalent of leaving someone at the altar for a richer suitor.

🏠 Real Estate

Intermediate

triple net lease

A commercial lease where the tenant pays all property expenses including taxes, insurance, and maintenance in addition to base rent. Abbreviated NNN, it's the landlord's dream where they collect rent while you pay for literally everything else.

🏠 Real Estate

Beginner

appraise

To slap a monetary value on something, ideally by someone qualified to do so rather than your overly optimistic uncle. This formal evaluation process determines the worth of assets, employee performance, or really anything that can be judged and assigned a number. Real estate agents love this word because it sounds more professional than 'guessing what someone will pay.'

🏠 Real Estate

Translate This Term

See “gift letter” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on X Share on Facebook Share on LinkedIn

Discover a Term

Intermediate

CPL

Cost Per Lead—the metric that tells marketers exactly how much they're paying for each potential customer who might, p...