Equity Gift

Gift of Equity

FHA World - Gift of Equity

Equity Gift - A Gift of Equity Mortgage allows you to use the difference between the market value (sales price) and the amount you are actually paying for the property as the down payment.  This is called a Gift of Equity Mortgage.

A gift of equity is a transfer of ownership of a property to a family member or someone with whom the seller has had a previous relationship, at a price below or at the current market value. The difference between the actual sales price and what is owed on the home is called the gift of equity. Most lenders allow the gift to count as a down payment on the home.

A gift of equity requires a gift of equity letter that is signed by both the seller and the buyer. Within the signed letter the seller may agree to pay for the buyer's closing costs, resulting in little or zero out-of-pocket expenses for the buyer.

For the purpose of obtaining a mortgage a gift of equity is treated as a purchase transaction. A sales contract will be needed.

Equity Gift - Gift of Equity. >>>>>

Gift of Equity Loan Gift of Equity Mortgage Gift of Equity Mortgage Guidelines Gift of Equity Mortgage Gift of Equity Mortgage Gift of Equity Mortgage Guidelines Gift of Equity Letter Apply for a Gift of Equity Mortgage Zero Down Payment Gift of Equity Requirements.

FHA Credit Score needed to buy
a house or refinance

FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%

FHA requires a minimum credit score of 500 to buy a home or refinance


Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date


Foreclosure must have been resolved for at least 3 years

Government loan: Seasoning is determined by the date the claim was paid

Loans other than Government: Seasoning is determined by the date of sale the lender sold the property

Short Sale

FHA guidelines requires three year past from the date of sale of the property

What documentation will I need?

  • W2's or Personal tax returns for 2 years
  • Current pay stubs for the past month
  • Bank statements for last 2 months (all pages)
  • Clear copy of Driver’s License (front and back)
  • Clear copy of SS card (front and back)

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