FHA Gift of Equity Purchase

Gift of Equity - When Your Downpayment 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.


Additional Features of FHA Gift of Equity Purchase Programs:

  • Lower Credit Scores

  • Little (or No) Down-Payment Programs

  • Gifts can be used as the down payment

  • No Income Limits

  • 'Good Neighbor Next Door' Programs

  • 'Home Path Ready Buy Programs' to purchase previously foreclosed homes.


The important step in purchasing a new home is to get an FHA Pre-Approval Letter for a home loan. The peace of mind that comes with knowing that your mortgage loan has been approved will allow you to shop for your new home with confidence. And when you are ready to make an offer, the fact that you have already been pre-approved for your loan amount will give the seller confidence in you as a buyer.

FHA First Time Home Buyer Applicaion