Do I need to put a down payment on a loan when there is equity in the home?

Hi craehill,

If you take a loan of $160k, you will have to pay the rest of the amount ($335k-$160k)as a down payment for the property. You have mentioned that you have 200k in equity. Are you talking about gift of equity? It would be better if you could give some details regarding your query.

Thanks.

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your post is confusing, craehill. are you purchasing this home for $355K?

This loan is for my mom. She would be buying a home from me. She once owned it but has been renting it from me for almost 8 years. I only want to sell it to her for what is owned on the loan ($160) not for the value of the home ($355).
Also, what are the tax ramifications if any?

you would want to consult with a tax advisor as to tax ramifications.

with that out of the way, you would be able to provide to your Mom a gift of equity in the property, and she'd then be able to borrow the $160K needed to pay off your mortgage. remember, of course, to take into consideration any interest you owe, plus her closing costs.

Thanks gmakerley. Can I call you later?

sure you can.