Purchase:

• Equity from home is used for down payment
• Credit scores down to 500
• Seller concession can be combined with the gift of equity
• Only out of pocket expense is appraisal

Eligible Properties:

• 1-4 units
• Manufactured/mobile Homes
• Condos
• PUDs

Ways To Gift Real Estate:

• Gift of equity
• Sell to your loved one at a personal loss using a gift of equity
• Add your loved one to the deed
• Create a life estate

What is a Gift of Real Estate?

A gift of real estate is the legal transfer of ownership of a property from one person (the donor) to another (the recipient) without receiving any payment in return. There are different ways to do this, and some come with special rules, so it’s important to chat with a lawyer or tax person to understand everything before giving away valuable property.

FHA Gift of Equity Requirements

• An FHA gift of equity requires a gift of equity letter that is signed by both the seller and 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.
• The buyer and seller must be related.
• A minimum credit score of 580 is required.
• 15% equity of the home must be used for down payment.