Gift Of Equity Letter PDF Details

When a family member decides to help a loved one buy a home, one of the most impactful ways they can do so is through a Gift of Equity. This form of financial assistance is not only generous but also helps provide a significant boost to the homebuyer's purchasing power. The Gift of Equity Letter is at the heart of this process, serving as a formal declaration that a certain amount of a property's value is being given as a gift from the seller (often a family member) to the buyer, who is typically related to the donor. This document specifies the donors' names, the relationship to the borrower, the exact dollar amount of the equity being gifted, and the property's address. Most importantly, it underscores the fact that this gift comes with no strings attached—no repayment is expected or implied at any time, whether in cash or other forms of compensation. This clear-cut statement is crucial, not just for the peace of mind of both parties involved, but also for meeting the requirements of lenders and legal bodies, who need to ensure that the transaction is genuinely a gift and not an undeclared loan that could affect the financial dynamics of the property purchase.

QuestionAnswer
Form NameGift Of Equity Letter
Form Length1 pages
Fillable?No
Fillable fields0
Avg. time to fill out15 sec
Other namesgift of equity letter template, gift of equity form, sample gift of equity letter, gift letter printable

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Gift of Equity Letter

I (we), ____________________________________

(Print Donors Name)

are providing ______________________________,

(Borrowers)

our _______________________________

(Borrowers relationship to Donor)

with a gift of equity in the amount of $______________

to be used to purchase the property located at:

_____________________________

_____________________________

This is a bonafide gift with no repayment expected or implied, written or verbal, in the form of cash or other services.

_______________________

___________

Signature of Donor

Date

_______________________

___________

Signature of Donor

Date

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