Mortgage LOX Maker: Gift of Equity Letter

Make your own Letter of Explanation (LOX) for gift of equity transactions. Create a gift of equity letter for family real estate sales. Generate instant PDFs for your lender with digital signature capture.

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When To Use A Gift Of Equity Letter

Family Home Sale

Your parents or family members are selling you their home below market value.

Inheritance Property

You're purchasing property from an estate at below market value as part of inheritance.

Helping Family Member

A family member is selling you property at a reduced price to help with your home purchase.

Multi-Generational Planning

Your family is transferring property as part of multi-generational wealth planning.

Family Investment Property

You're purchasing a family-owned investment property at below market value.

Common Scenarios Requiring Multiple Letters

Gift of Equity + Family Sale:

  1. Use this gift of equity letter to document the equity gift
  2. Use our non-arms length transaction letter to explain the family sale
  3. Use our source of funds letter to document the purchase funds

Family Gift + Down Payment:

  1. Use this gift of equity letter to document the equity gift
  2. Use our gift letter to document any additional cash gifts
  3. Use our large deposit letter to explain gift deposits

How to Use This Gift Of Equity Letter Generator

1

Gather Your Information

Collect all necessary details and supporting documentation before starting the generator.

2

Complete the Form

Fill out all required fields in the generator. The preview will update in real-time as you type.

3

Review and Sign

Review your letter for accuracy, add your digital signature, and download the PDF.

4

Submit to Your Lender

Send the completed letter to your loan officer along with any supporting documentation.

Supporting Documents Your Lender May Need

DocumentWhat It Tells Your Lender
Property appraisal showing market valueProvides additional verification and context for your situation
Purchase contract with sale priceProvides additional verification and context for your situation
Gift of equity calculationProvides additional verification and context for your situation
Family relationship documentationProvides additional verification and context for your situation
Seller's property ownership recordsProvides additional verification and context for your situation

Frequently Asked Questions

When will I need a gift of equity letter?

Your loan officer will request a gift of equity letter if you're buying property from family at below market value.

Who can provide a gift of equity?

Immediate family members like parents, grandparents, or siblings can provide gifts of equity for mortgage transactions.

Is an appraisal required for gift of equity transactions?

Yes, lenders require an appraisal to establish the property's market value and confirm the gift amount.


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