FHA Gift of Equity Purchase

Gift of Equity - When Your Down payment is a Gift

Home buyers who can make a house payment with no difficulty sometimes can't buy a house because they don't have the funds required for a downpayment and closing costs. One solution to the problem--use a Gift or your downpayment.

Yes, you can use gifted funds from your relatives for the down payment on a house. You just need to get a letter documenting the gift, and then give it to your lender. The letter does not need to anything fancy, but it does need to include certain items:

  1. The family member's name, address, phone number, and relationship to you.

  2. The amount of money they are giving you (exact dollar amount).

  3. The date of the gift / donation.

  4. A statement verifying that they do not expect repayment.

 

 

 

 

 
 
 
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