Do FHA mortgage loans allow gifts of equity?

Yes, But You May Only Obain a gift of equity from Family Members may provide equity credit as a gift on property being sold to other Family Members.  The Lender must obtain a gift letter signed and dated by the donor and Borrower that includes the following:  

• the donor’s name, address, telephone number; 
• the donor’s relationship to the Borrower; 
• the dollar amount of the gift; and
• a statement that no repayment is required.   

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