Home Buying in Calumet Park>Question Details

Youngr, Home Buyer in Calumet Park, IL

house appraised at selling price,owner lowing the price,giving me a gift of equity,my brother will this work

Asked by Youngr, Calumet Park, IL Sat Feb 25, 2012

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Your wording of your question makes it a little hard to figure out what you are talking about. If your contract price, for example, is $100,000, and the appraised value came in at that amount, but your brother, who is the seller (??) is giving you a gift of equity of, let's say, 20%, o4 $20,000, your purchase price is still $100,000, it is just that he is only getting the $80,000, but the price is not really lowered. I assume you are financing the home. The lender may require you to have 5% of the purchase price in your own funds in the deal. Although if you are getting a gift of equity of 20%, or you are taking out an FHA loan, this may not be the case. Sometimes it's the underwriter's call, and may depend on your credit history and debt to income ratio.
0 votes Thank Flag Link Sat Feb 25, 2012
Non sense. You gave the appraiser a contract with sales price. If the agreed to sales price is lowered you must inform the appraiser with a change in contract price since the appraiser is required to report the correct sales price in the appraisal. This must also be reported to the bank and everybody else including the title company for closing. The appraised value can differ from the contract price. Just do not cause a problem by not reporting correct agreements to the parties involved.
0 votes Thank Flag Link Sat Feb 25, 2012
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