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The contract states the sales price is $321,000. So, more of my question becomes of where to show the gift equity – in Adjustments and Other Credits or in Seller Credits (the gifting is coming from the borrower’s dad). The transaction also has a $5,000 seller credit to cover closing costs.
I would like to open this discussion again as we are running into the issue of having gift equity ($64,200) along with seller credit ($5,000). The LE is showing a sales price of $321,000 and a loan amount of $256,800. The gift equity is reflecting in the difference in the sales price and the loan amount (20% down payment). If the family memeber, who is the seller, is gifting the 20% down, should we not be showing the sales price with the 20% off? If we are already reflecting the gift equity on page 1 of the LE would we even need to show it in the Calculating Cash to Close table on page 2?
