source:
  type: guide
  id: fnma-sel-b3-4.3-05
  authority: Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity
  description: Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-4.3-05-full
  canonical_id: fnma-sel-b3-4.3-05-full
  section: Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-4.3-05 — Gifts of Equity
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: '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: Published May 6, 2026 428 a signed gift letter
      (see B3-4.3-04, Personal Gifts), and the settlement statement listing the gift
      of equity. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SEL-2020-06 October 07, 2020'
  judgment: false
