Tag Archive for: gift of equity

What Is A Gift of Equity?

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A gift of equity allows a homeowner to sell their property to a family member or close associate for less than its market value. The difference between the market value and the sale price is considered a gift, which the buyer can use as a down payment. This can be a great way to help a loved one purchase a home while minimizing out-of-pocket costs.Read More

Property Value = Lesser of Purchase Price or Appraisal; Gift of Equity

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This is a reminder that lenders must always use the lesser of the appraised value or the purchase price on the contract for financing and loan-to-value purposes. So, even if we have a rock solid $500,000 appraisal, if the purchase price on the contract is $250,000 – $250,000 will be the value from the lender’s perspective – no matter what. Read More

Pre-Approval #s DOUBLE Year Over Year; Gift Of Equity In Lieu Of Down Payment

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JVM formally pre-approved 268 borrowers for the purchase of a home in June. This was an all-time record for us and up over 100% from last June, when we only […]Read More

Gift of Equity Instead of Down Payment – When Family Sells to Family

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Sellers who gift equity often only want to net a certain amount of cash, but they still want to sell the property for the full market value so their generosity is on full display.Read More