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Can I get a sample gift of equity letter?

Posted on: 05th Apr, 2007 11:34 am
Can someone send me a sample gift of equity letter? Thank you.
JC, this format for gift of equity letter should work:

"
To whom it may concern,

The purpose of this letter is to state that I am giving my (relationship between donor and recipient), (recipient's name), a gift of ($XX,XXX) to be used toward the purchase of a home. There is no expectation of repayment of this gift.

Sincerely,
(donor's name)
"

Also, after letter is made it should be signed and dated.
Posted on: 05th Apr, 2007 11:41 am
Letter Lichtenberg has given is of the short format and some lenders may not accept it.

You can use this detalied format of a gift of equity letter also. Take out a print of the letter and show it to your lender he will tell you if it can be used or not.

"


GIFT LETTER



I/WE ______________________________________________________________________________
YOUR NAME(S)

residing at

____________________________________________________________________________
YOUR ADDRESS and TELEPHONE NUMBER

AM/ARE the ____________________________ of [home buyer's name].
RELATIONSHIP

I/We have given or will give the sum of $____________ as a gift to [home buyer's name] towards the
purchase of the property located at:

[property address]

I/We certify that the above gift was or is given in good faith and repayment of such gift is not required. The funds given to [buyer's name] were not made available from any person or entity with an interest in the sale of the property including the seller, real estate agent, broker, builder, loan officer or any entity associated with them. The above funds will be drawn on my account with

_________________________________________
NAME OF YOUR BANK

_________________________________________
ADDRESS OF YOUR BANK

_________________________________________
ACCOUNT NUMBER

________________________________
SIGNATURE OF GIFT DONOR

Date: _____________________________

________________________________
SIGNATURE OF BORROWER #1

Date: _____________________________

"
Posted on: 05th Apr, 2007 12:00 pm
We recently had a death in the family and the heirs want to sell house of deceased to my Daughter the deceased grand daughter. question if all parties are in agreement can we reduce the sale of the house from 80000.00 to 60000.00 and consider the difference a gift of equity with out money changing hands, or should we just reduce the price?
Posted on: 26th Aug, 2008 10:56 am
Hi Omer,

Welcome to forums.

You can reduce the price if that makes it easy for you to buy the home. But if you consider the remaining as gift of equity, your daughter need not pay gift taxes on what she recives. Rather, the individuals offering the gift will have tax considerations provided they don't qualify for gift tax exemptions .

Thanks
Posted on: 27th Aug, 2008 01:26 am
In the sample gift letter given here, it states the amount that is given. However, it says "towards the purchase of the property located" what if we recieve 100,000 however only use 70,000 towards the purchase of the new home and the rest we use to help us move and cover breaking our current rental lease?
Posted on: 10th Dec, 2008 06:11 am
Hi Chitiris,

As you are using 70,000 towards the purchase of the property, you should write that in the gift letter which you will be showing to the lender. You will not have to write 100,000. However, the person gifting you the money will be paying gift taxes. if any, on the 100,000 and not on the 70,000.

Thanks
Posted on: 10th Dec, 2008 11:48 pm
I need to write a letter to my sibling concern renowning their share in my mother home who die 20 years. Six have given their share Two have not.
I have paid the foreclosure, taxes and remolding house.

Help!!!!
Posted on: 03rd Apr, 2009 05:29 am
Hi,

I need to write a letter to my sibling concern renowning their share in my mother homw who died 20 years ago. Six of my sibling have given their shares; two have not. I've paid the foreclosures, taxes and remolding the house. I need sample letter so I can put the propert in my name.
Posted on: 03rd Apr, 2009 05:44 am
How many family member can gift you money to be use for a down payment of a house that we are buying. We need 60,000 and I dont know how to get this done. Please help.... thanks
Posted on: 17th Dec, 2009 03:53 pm
Hi Wajo,

There is no limit to the maximum number of family members who can gift you money to make the down payments. If there are, say, 10 of your family members who want to assist you with the down payment, they can go ahead and do so. As long as you are not borrowing the money to make the down payment and you can show the lender the source of the gift money, there should not be any problem for you.
Posted on: 20th Dec, 2009 11:39 pm
wajo, the fewer the better, though - just think of all the paperwork and the potential for confusion when this arrives in your lender's office. i agree with what jenkin7 told you, but caution you to keep it down to a dull roar, if possible.
Posted on: 21st Dec, 2009 09:43 am
Since the Apr 30 deadline has expired for the government tax credit, are there any new ones for a first time home buyer? :?:
Posted on: 05th May, 2010 07:01 pm
Welcome Sharonjo,

I haven't heard of any new tax credit for first time home buyers.
Posted on: 06th May, 2010 12:53 am
No, Sharon, you won't find any more tax credits. Now that's not to say that the government couldn't reinstitute it at some date in the future, but for now, it is gone.
Posted on: 06th May, 2010 09:23 am
For years I have been paying in our "house account". My mother "owns" the house but the money I have been paying in is being applied toward the downpayment.... so in my mind I have been paying for it. The bank is telling me to ask for a Gift of Equity Letter.

Why would it be a Gift of Equity Letter if I really paid for it. Am I getting hung up on details and it doesn't matter as much?

Can give more details if you need them.
Posted on: 07th May, 2010 11:56 am
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