< Back to JVM's Blog

“Gift Of Equity” For a Down Payment Instead of Cash

This is a reminder that sellers can “Gift Equity” as a portion of a down payment. With conventional financing, a “Gift of Equity” can comprise the entire down payment if it is 20% or more of the purchase price.

If the Gift of Equity is less than 20% of the purchase price, buyers must still come up with 5% of the price from their own funds.

Gifts of Equity can be employed as creative solutions for helping cash-starved borrowers come up with a necessary down payment. The ploy is especially useful for properties (condos) that are ineligible for FHA financing, and down payment requirements are 10% or more (high balance loans).

Please call us for more details.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646