MORTGAGE ANSWERS
Can Parents Give a Gift of Equity?
A family sale may allow some of the seller’s equity to be credited toward eligible buyer costs.
What to know.
The sales price, appraised value, relationship, occupancy and loan-program rules all matter. The lender will usually need a gift letter and documentation of the transaction. A gift cannot exceed the value available under the applicable program and must be structured correctly.
Talk through your own numbers.
Talk to John before writing the purchase contract so the numbers and documents align.
TALK THROUGH YOUR SCENARIO
Start with a conversation.
Tell John what you want to accomplish. He’ll help you sort through the options and next steps.