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Gift of Equity - When Your Down payment is a Gift
Home buyers who can make a house payment with no difficulty sometimes can't buy a house because they don't have the funds required for a downpayment and closing costs. One solution to the problem--use a Gift or your downpayment.
Yes, you can use gifted funds from your relatives for the down payment on a house. You just need to get a letter documenting the gift, and then give it to your lender. The letter does not need to anything fancy, but it does need to include certain items:
The family member's name, address, phone number, and relationship to you.
The amount of money they are giving you (exact dollar amount).
The date of the gift / donation.
A statement verifying that they do not expect repayment.
FHA Loan Information
The FHA does not lend money. The FHA (Federal Housing Administration) is part of HUD & backs individual Approved Lenders.
Note: We are not affiliated with the Federal Housing Administration, the Department of Housing and Urban Development, or any other government agency. We are an FHA Educational Resource.
Our responsibility is to help you find the best FHA Approved Lender who can help you secure home financing.
When you fill in our short application we will provide your information to one, (and only one!) FHA Approved Lender who can help you based upon many factors, including your Credit Score, your State Location, and the Type of Loan you apply for.