Purchase Contract With Gift Of Equity In Virginia
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FAQ
A “gift of equity” refers to a gift provided by the seller of a property to the buyer. The gift represents a portion of the seller's equity in the property, and is transferred to the buyer as a credit in the transaction.
Yes, if you have a mortgage on the property your lender will need to consent to any other parties becoming legal owners. They will require the incoming party to become a party to the mortgage as well.
Documentation Requirements Gifts must be evidenced by a letter signed by the donor, called a gift letter. When the gift is sourced by a trust established by an acceptable donor or an estate of an acceptable donor, the gift letter must be signed by the donor and list the name of the trust or the estate account.
Generally, you can give a gift of equity to someone if you're a family member (which includes legal guardians), engaged to the recipient or a domestic partner. Loans backed by the federal government may restrict giving gifts of equity to family members only.
Documentation Requirements Gifts must be evidenced by a letter signed by the donor, called a gift letter. When the gift is sourced by a trust established by an acceptable donor or an estate of an acceptable donor, the gift letter must be signed by the donor and list the name of the trust or the estate account.