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.
Your Information
Letter Preview
I, {{donorName}}, am the {{donorRelationship}} of {{borrowerName}}, who is purchasing the property at {{propertyAddress}}.
I hereby certify that I am providing a gift of equity in the amount of ${{giftAmount}} toward the purchase of this property. This gift is a true gift and no repayment is expected or implied.
Name of Donor: {{donorName}}
Address of Donor: {{donorAddress}}
Phone of Donor: {{donorPhone}}
Donor Relationship: {{donorRelationship}}
Donor's Signature: {{signature:donorSignature}}
Date: {{signatureDate}}
Borrower's Signature: {{signature:borrowerSignature}}
Date: {{signatureDate}}
Tips for Success
- Keep explanations brief and factual
- Attach supporting documentation when possible
- Review all information before signing
- Submit within 48 hours of your loan officer's request
Important Reminders
- All information must be truthful and accurate
- False statements may result in loan denial
- Keep copies for your records
- Contact your loan officer with questions
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:
- Use this gift of equity letter to document the equity gift
- Use our non-arms length transaction letter to explain the family sale
- Use our source of funds letter to document the purchase funds
Family Gift + Down Payment:
- Use this gift of equity letter to document the equity gift
- Use our gift letter to document any additional cash gifts
- Use our large deposit letter to explain gift deposits
How to Use This Gift Of Equity Letter Generator
Gather Your Information
Collect all necessary details and supporting documentation before starting the generator.
Complete the Form
Fill out all required fields in the generator. The preview will update in real-time as you type.
Review and Sign
Review your letter for accuracy, add your digital signature, and download the PDF.
Submit to Your Lender
Send the completed letter to your loan officer along with any supporting documentation.
Supporting Documents Your Lender May Need
| Document | What It Tells Your Lender |
|---|---|
| Property appraisal showing market value | Provides additional verification and context for your situation |
| Purchase contract with sale price | Provides additional verification and context for your situation |
| Gift of equity calculation | Provides additional verification and context for your situation |
| Family relationship documentation | Provides additional verification and context for your situation |
| Seller's property ownership records | Provides 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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