Questions re: gift of equity

Is it possible to request a gift of equity as part of an offer? For example- House is for sale for $200,000, you want to offer $180k. Can you offer $200k with a gift of equity from the seller of $20k? As far as my simple mind can figure wouldn’t this go down like you are buying for $200k and borrowing $180k from the bank, hence a 90% loan? Could I do this and therefore get a better mortgage rate since I am not 100% financing?

I also read somewhere there is a cap of $11k on gift of equity before you are taxed, can this be split over the 2 cosigners on the loan to avoid taxation? Cosigners would not be married at the time of purchase.

On most loans a gift of equity must come from a relative.

Can’t be from a “friend” that I just met? What if I marry his daughter the day before closing and get it annulled the next day? ;D

We gotta do what we gotta do to survive…Lol
I just hope she is cute.

is he willing to give u a gift of equity, really??? hmmm…

if the bank is offerring u 90% LTV, what u can ask for is a seller 2nd for the remaining 10% provided the bank allows it. u have to ask them. some want u in for some cash. but maybe u can ask that the seller 2nd be forgiven at such a date. see if u can have a seperate forgivance of debt agreement written but don’t record it. just being creative. never heard of it, never did it. check the legality of it, it might just work

The gift cap went to 12k in 2006. You can get your 20k but 8k of it would be subject to the gift tax over the 12k.

The gift doesn’t have to be from a family member for tax purposes.

I don’t expect the lenders will go for it though and that is what this is all about.

In my experience lenders have required it come from a family member, be documented, go through a checking account and sometimes with a gift letter or gift affadavit from the giver.

So, you want to talk a guy down 20k then ask him to make the reduction a gift. Nice try. I Don’t think it’s been done before.

Just playing with you ryanpal. Fact is, you are trying to think CREATIVELY and THAT IS THE KEY.

Does the property have a positive cash flow?