Gift of Equity

Gift of Equity

A sale price below market value,where the difference is a gift from the sellers to the buyers.

Such gifts are usually between family members. Lenders will usually allow the gift to count as a down payment. See Down Payment/Gift of Equity.

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Home owners in Santa Clara County are getting the best gift of all this holiday season C the gift of equity," commented Myron Von Raesfeld, President of the Santa Clara County Association of REALTORS.
The buyer assumed a $172,000 mortgage, with the $43,000 difference accounted for as a gift of equity from the seller.