Purchasing rental property on a reverse mortgage with gift of equity?My husband's mother recently passed and she has 25% ownership of a rental property along with her 3 siblings. The rental property loan was in her name only and it is currently a reverse mortgage. There is currently about 15% equity in the property. The 25% ownership passed to my husband and the siblings are willing to sell the property to us and gift us the equity in it. Can we purchase the property and use the gift of equity as a down payment if it is currently in a reverse mortgage?January 21 2012 - Los Angeles00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.