Only Family Members may provide equity credit as a gift on property being sold to other Family Members. The Mortgagee must obtain a gift letter signed and dated by the donor and Borrower that includes the following:
• the donor’s name, address, telephone number;
• the donor’s relationship to the Borrower;
• the dollar amount of the gift; and
• a statement that no repayment is required.
For additional information see Handbook 4000.1 II.A.4.d.iii(F)(4) or II.A.5.c.iii(F)(4) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh