Tag gift fund and gift of equity guidelines 2019

Tag gift fund and gift of equity guidelines 2019

A Gift Fund or Gift of Equity Can Be Your Best Gift Ever

John Thomas April 4, 2019 Tags: , , ,
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Did you know? Nearly 25% of first-time home buyers use cash gifts as down payment on their home, according to the 2017 National Association of Realtors Profile of Home Buyers and Sellers report.

Yes, it’s true.

Many people find it difficult to purchase their first home when cost meets financial constraints (like having to pay off student loans despite good-paying jobs).

Here’s where caring friends and family may step in and help out—by offering a gift fund or a gift of equity.

What Is a Gift Fund and What Is a Gift of Equity?

When you’re looking to buy a house and you’re getting a loan, any money that your relative wants to contribute toward the purchase of your home is called a gift fund. Gift funds are common when a person buying a home doesn’t have all the liquid money to purchase it and a relative is willing and able to help supplement their financing needs.
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