Gift funds are accepted for any loan or mortgage application to help cover any closing costs or down payments. For the gift fund to be approved, the money should be provided by a relative of the borrower and also include a certificate that contains the signature of the donor which dictates that the money is a gift and not a loan. The letter must also state that the funds described and clearly stated are not going to be paid back by the borrower. The donor will also have to prove the underwriter with a 30-day bank statement to show that the funds have been seasoned for a minimum of 30 days. The gift fund should be transferred from the donor’s bank account into the borrower’s and submitted as part of the proof.