Gifting of Equity Can Serve as Your Down Payment
If you are buying a home from a relative, the relative can gift you the equity in the home to take the place of the down payment or closing costs, according to Loan Originator, Christine Heath of fbc mortgage.
Gifting can only be done by a relative, whether it is equity or actual cash, thus the stipulation that the property be sold by a relative.
While this obscure option is specific, there are many issues that this can serve as a useful solution. Estate issues often come at inopportune times, and you may find that you are short the cash for the down payment. This could be an answer to get possession of the home from the estate without cash. This could also serve in divorce issues where one spouse needs to buy the house from the other to get a loan out of the name of the soon-to-be ex.
“It’s just another trick of the trade one picks up from having 20 years in this business”, explains Heath. “The key to being a good lender is having the knowledge to create options for buyers and the product to be able to execute them”.
Christine Heath NMLS#152859 is a loan officer with fbc mortgage in Brandon, FL. If you would like to learn more about your options to get financing for your new or existing home, reach her at http://financialtoolshed.com/fbc-mortgage/, or call Christine Heath at 813-967-4156.
Make the Choice. Make the Change. Delta.