Gift of Equity: The Seller Makes How Much?

So, I’ve rented a home fully-owned by my mother for years and finally am thinking of trying to purchase this home from her. The home is expected to appraise for at least $600K, and my mother is willing to sell me the home for $400K. We are thinking of trying to use the $200K decreased price as a “gift of equity” and down payment on the $400K house.

If I am able to secure a mortgage loan using this gift of equity/down payment and borrow an additional $200K, will my mother receive apx $400K upon selling me the house?

I really want to keep the house within our family and give my mother the full selling amount she is asking.

Thank you for your response.

Yes, if you are able to secure a mortgage loan using the $200K gift of equity and borrow an additional $200K, your mother would receive approximately $400K upon selling you the home. However, it is important to consult with a local real estate agent, lender, and tax professional to ensure that everything is done properly and transparently, and to address any potential legal or financial implications.

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