Can I buy a home with a gift of equity?

Yes. A gift of equity happens when a family member sells you their home below market value, and the difference counts as your down payment. It's common in family sales.

If a relative sells you a $400,000 home for $360,000, the $40,000 in equity serves as a 10% down payment. You'll need a gift-of-equity letter and an appraisal confirming value. We'll structure the transaction so it qualifies.

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