Gift of Equity
A gift of equity occurs when a seller, usually a family member, sells a home below market value and counts the difference as the buyer's down payment.
What Gift of Equity means
The equity gift can satisfy some or all of the down payment without cash changing hands. It requires a gift letter and an appraisal establishing market value. Lenders allow it mostly on family transactions.
Florida example
Parents sold their Orlando home to their daughter for $250,000 though it appraised at $300,000, and the $50,000 gift of equity covered her entire down payment.
What it is
A gift of equity happens when a seller, often a family member, sells below market value. The difference acts as your down payment.
It lets you buy with little or no cash down.
When it helps
A gift of equity is a powerful way for family to help you buy. It needs proper documentation to count.
We handle the paperwork to make it work. Reach out and we will structure a family sale right.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: Florida Housing homebuyer programs and CFPB Owning a Home guide.