Gift of Equity Calculator

Gift of Equity Calculator is used to calculate the amount of gift of equity. The gift of equity is calculated based on the property value and the sale price.

What Is a Gift of Equity?

A gift of equity occurs when a homeowner sells their property to a family member for a price cheaper than the market price. The difference between market value and sale price is the gift of equity.

For example, if the market value of a property is $1,000,000, and the sale price to a family member is $800,000, the gift of equity is $1,000,000 - $800,000 = $200,000. The buyer can use this gift of equity as down payment helping them qualify for a mortgage to buy the home.

What Does a Gift of Equity Calculator Do?

The Gift of Equity Calculator helps you determine the gifted equity amount based on the home value and sale price.