Can I get a sample gift of equity letter?

I'm unclear on who retains gift info for mortgage paymts.
I was planning to get a low-no interest loan from a family member, for which the lender requests a gift letter & copy of cancelled " gift" check.
I plan to pay this back by year-end & not get involved with cosignatures, but my family now won't sign the letter because of expected taxes.
Does the IRS retain this info, & what is the best route, since it is not really a gift?

Hi Ericbob!

Welcome to forums!

You and your family should contact a CPA in this regard and take his/her opinion in this matter.

Sussane

Can you show me a format sample of a gift letter, that I would write and sign, for a friend of 20 years. He is the father of my grandchild. This would be for a FDA loan. Thank you

Welcome tara,

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

Ericbob, the IRS isn't involved in this. If you have serious tax questions, you truly ought to speak with a tax advisor, but no lender shares information with taxing authorities - it's not even really relevant. You're nervous about nothing in that case.

The lender send a fill out letter to have my brother fill out for gifting me $2000.00 to close the sale of a house I am buying. I povided the other $5000.00. The gift was cash that I deposited in my bank account. On the letter the lender wants my brothers bank account number which he will not give out as they are quite wealthy and dont want to give out that information. Is it required that the gifter must give out the bank account information?

Yes, it is, Karen. Lenders have seen way too much fraud over the years, and they need to button-down every last piece of the puzzle. If your brother won't divulge the information requested, you'll have a hard time using that $2000 from him. You might have to come up with another relative who's a bit more cooperative, who can also provide you with a couple thousand dollars.

If you can cajole your brother into doing what needs to be done, the lender ought to have no problem with it. They're simply looking for adequate documentation in an effort to verify that you're not trying to be sneaky - what kind of funds he has at his disposal won't ever be a part of the equation.

My father sold his house to my brother the gift letter was in the amount of $24000 does my father have to pay taxes on that amount?

Hi rose,

There is a gift tax exemption of $13000. Your father will have to pay taxes for the rest of the amount.

Thanks,

Jerry

I have a second home, it's a town house, it worths $300,000.00 market value. My son and daughter-in-law want to buy it, and I agreed to sell to them for $150,000, so they dont have to pay for down paymenr and closing costs. Please advise what kind of taxes that we both have to pay. Thank you.

Welcome Sharon,

You may be liable for property transfer taxes, deed recording fees, etc. The attorney who will handle the whole process will let you know what taxes you will be liable for.

Hi,
I am buying my brothers house.Appraisal = $315,000-200,000he
Owes on the house plus my closing cost.the balance $115,000
Will be a gift of equity.can this happen?what if I don't qualify
Because of bills I owe that puts me over the ratio?where does it go on the contract and what wording in the letter is necessary?

Can I use the appraisal value for the sales price?

Hi Jenny,

You can find a sample gift letter here: http://www.mortgagefit.com/know-how/giftequity-letter.html#24715 .

The appraisal value will be the value of the property and depending upon this, you will get the loan amount.