Can I get a sample gift of equity letter?

Hi kimmo,

I too did not understand why the lender is asking for a gift of equity letter. I would suggest you to contact your lender and check out why he is asking for it.

You can check out the given page to get a sample gift of equity letter:
http://www.mortgagefit.com/predeal/giftequity.html

Thanks

Kimmo, it's easy to understand, actually. Since you are not an owner of the home, your Mom would need to provide this gift letter for you. The funds you've paid into the home are, truly, your equity, but as you're not on title, no lender would consider it that way.

if some one is gifting money do they have to state where the funds are coming from?

Yes, Missy, gift funds must be "sourced."

I gave my son $45,000.00 from the sale of my home to him. We signed a loan agreement the money would be repaid within 4 years. No gift of equity letter was ever signed.
Now he refuses to repay the loan. He ststes this is mortgage fraud and the mortgage co can take the house back.
How true is this? My opinion, he is attempting to frighten me into stop requesting repayment.

If you and your son had signed an agreement regarding the loan, then you have the rights to receive the payments. You can even take legal actions against your son by contacting a lawyer if he is not paying the dues to you.

Could this make my nephew, who bought my late mother's (his grandmother's) house ineligible for the first time buyer tax break? He and his wife applied for it but were denied. The house was sold under the "estate of..."
Any help is greatly appreciated.

Hi bassithound!

Welcome to forums!

Your nephew and his wife won't be considered as a first time buyer as they already own their grandmother's house.

Sussane

I am confused. The house was on the market when my Mom died. My nephew was renting at the time and we lowered the price so they could buy it. They never owned a home before. They bought it (October, 2009)before the deadline expired for the tax break. What could be the reason for the denial. A friend did the same thing for their son around the same time and he got the tax break. Thank you so much for your input. I feel terribly for my nephew because he wanted to keep the house in the family.

Hi bassithound,

If a property is purchased from some one who is in blood relation with you, then you do not qualify for the first time homebuyer's tax credit. That may be one of the reasons why your nephew won't qualify for a tax credit.

Thanks

If I offer a gift of money to a relative for the purchase of their house, let's say $7,000. Whose responsible for paying taxes on that money?
Thanks!

Hi Lorena!

Welcome to forums!

As you're gifting the money, you'll be liable for paying gift taxes. However, there is a gift tax exemption of $13,000 annually. Thus, you won't be liable for paying the gift taxes for $7,000.

Feel free to ask if you've further queries.

Sussane

Thank you for the feedback!

can a brother inlaw give this down payment if he is not marryed to your sister any more

The brother-in-law may gift the down-payment. However, it will be better if the borrower discusses the matter with the lender and takes his opinion in this issue.