Letter of explanation for a large deposit
Underwriters ask about a large deposit because money that appears in an account without a paper trail can look like an undisclosed loan. The letter should say what the deposit was, whose money it was, the date, and the amount. Your lender decides the dollar amount that counts as large. This page does not publish a threshold.
Preview
The draft shows up here. Until you unlock a copy, the preview is watermarked and the second half stays hidden. Copy and download of the finished letter include signature and date lines.
Papers lenders often ask for
This is a practical list, not a regulation. Your loan officer’s condition controls, and this site does not invent an official checklist for letters of explanation.
- The bank statement page that shows the deposit
- A gift letter, if the deposit was a gift
- A bill of sale, closing statement, or transfer record, if the money came from a sale or a transfer of your own funds
Blank letter
Free to copy. The generated draft stays watermarked until you unlock it.
To whom it may concern: I am writing to explain a deposit of $[amount] on [date] into the account ending [last 4]. The money came from: [source, in plain words]. Where that money is now: [still in the account / used for earnest money / other]. [Borrower name] Borrower signature: ______________________________ Date: ________________
What is a letter of explanation?
It is a short factual note an underwriter asks for when a deposit, a credit inquiry, a gap in work, or another item on the file needs a source, a date, or a reason. It is not a gift letter. A gift that has already landed in your account often needs both.
Can the letter leave out where a deposit came from?
No. The draft uses only the facts you type, and it will refuse a request to hide or relabel the source. If you do not know a fact, leave it for your loan officer instead of guessing.
Are you affiliated with Fannie Mae, FHA, VA, or a lender?
No. Mortgage Gift Letter is not Fannie Mae, Freddie Mac, Ginnie Mae, FHA, VA, Nationwide, RBC, or any lender or broker. Notes on this site are summaries of public pages, with the source linked. They are not an official form.
Is this financial, legal, or mortgage advice?
No. We format a letter from facts you supply. We are not your loan officer, lawyer, or broker. Your lender’s requirements and forms take priority. Ask which format they accept before you rely on a draft.
What do I get before I pay?
A watermarked preview with the second half hidden, plus the blank templates on each page. Copy and download of the finished letter, as PDF and Word, unlock after purchase. Single letter is $4.99. Unlimited letters for one loan, for 30 days in this browser, is $9.99. If checkout is not connected, the button says coming soon.
Do UK and Canadian lenders use the same letter?
No. Requirements vary by lender. The UK page summarizes Nationwide’s published gifted-deposit page. The Canada page summarizes what RBC has published on its own site. Neither is a national form.
If the deposit was a gift, you may also need a mortgage gift letter.