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jfink46
295 Posts |
 Posted - 07/24/2008 : 1:17:57 PM
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I did a search before posting this, and it seems like most of the gift of equity questions revolve about the tax implications. I am trying to find the max LTV on a conventional loan where ALL down payment is gifted to the buyer.
The scenario would be father selling a house that his daughter and son-in-law have lived in for a couple of years. The appraised value is $450,000 and he only owes about $240,000 on it. He wants to get about $110,000 back to payoff some debt. So does anyone know if I can do a $360,000 conventional loan (80%) with all the down payment coming from Gift of Equity? I was going to do this as an FHA loan, but now he is asking about a 7 year I.O.
Any ideas? |
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lukeallison
1409 Posts |
Posted - 07/24/2008 : 1:20:20 PM
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| Yes, you should be fine. Less than 20% may be a problem. |
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jfink46
295 Posts |
Posted - 07/24/2008 : 1:22:41 PM
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Thanks. Flagstar would be one of the lenders I would be looking at as well.
Anyone else do this recently? |
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dwmordue
430 Posts |
Posted - 07/24/2008 : 1:47:02 PM
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Did one through Countrywide 2 months ago. They had me enter the gift of equity as an account under the Asset Section of the 1003, and decisioned it as if the buyers had that amount of money in the bank.
No, this wasn't the Fast and Sleezy, it was full doc. I think anything involving gift of equity has to be manually underwritten. |
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