Gift of Equity

Fannie Mae & Freddie Mac – HomePossible® & HomeReady®-Gift: Is a 3% gift of equity, used for down payment purposes, allowed on a HomeReady® or HomePossible® from an Aunt/Uncle? Gift Funds and Gifts of Equity – All Agencies – Chart

Answer: Both agencies allow gift of equity as the source of down payment for a HomeReady or Home Possible mortgage.  A lender can choose to overlay that ability, but Fannie and Freddie do not prohibit when the donor is an eligible donor.  However, the property must be a one-unit single family dwelling (Condo/PUD okay), and [...]

2019-05-22T13:05:38-05:00May 24th, 2019|

FHA – Gift From Parent Seller: If a client is purchasing a home from their parents, can the parents give them a gift for the down payment? [Chart – FHA Gift Funds – Donors & Documentation]

Answer: The short answer is that the parents can give a gift, either personal or of equity, even when they are the seller. (See second set of guidelines below regarding gifts.) Family members are the exception to the rule stated in 4000.1, II, A, 4, d, ii, (B) that says that a seller cannot be the source [...]

2018-05-29T17:05:47-05:00April 24th, 2018|