Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity
Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity.
Verbatim regulatory text
Verbatim provisions from Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity
B3-4.3-05, Gifts of Equity (10/07/2020) Introduction This topic contains information on gifts of equity, including: Gift of Equity Documentation Requirements Gift of Equity A “gift of equity” refers to a gift provided by the seller of a property to the buyer. The gift represents a portion of the seller’s equity in the property, and is transferred to the buyer as a credit in the transaction. A gift of equity is permitted for principal residence and second home purchase transactions; can be used to fund all or part of the down payment and closing costs (including prepaid items); and cannot be used towards financial reserves. The acceptable donor and minimum borrower contribution requirements for gifts also apply to gifts of equity. See B3-4.3-04, Personal Gifts. When a gift of equity is provided by an acceptable donor, the donor is not considered to be an interested party and the gift of equity is not subject to Fannie Mae’s interested party contribution requirements (see B3-4.1-02, Interested Party Contributions (IPCs)). Documentation Requirements The following documents must be retained in the loan file: a signed gift letter (see B3-4.3-04, Personal Gifts), and the settlement statement listing the gift of equity.
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Industry guidance on this section
Third-party practitioner commentary — not regulator text, and not part of the verbatim corpus above. Listed because it addresses questions this provision raises but does not answer.
- Personal Gift Funds for Down Payments | Homebuyer.comhomebuyer.com
Explains the donor-relationship test and why Fannie draws the line where it does.
- Gift of Equity: What It Means for Home Buyers in 2026amerisave.com
Explains when a gift of equity can cover the entire down payment.
Source of record: https://claudeforcompliance.com/regs/fnma-sel-b3-4-3-05/
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