{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-if-my-equity-injection-includes-funds-from-the-sale-of-my-primary-residence-that-occu","api_url":"https://dealroom.so/api/public/questions/what-if-my-equity-injection-includes-funds-from-the-sale-of-my-primary-residence-that-occu","question":"What if my equity injection includes funds from the sale of my primary residence that occurred less than 90 days ago?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Funds from the recent sale of a primary residence can be used for equity injection, but require clear documentation of the sale and the funds' deposit.","rule":"The SBA generally requires verification of the source of equity injection funds. For recent asset sales, lenders must obtain a settlement statement (HUD-1 or equivalent) and bank statements showing the deposit of net proceeds to demonstrate the funds are unencumbered and truly belong to the borrower.","example":"A buyer sells their home for $500,000, netting $150,000, and deposits these funds into their bank account 60 days before applying for an SBA loan. The lender will require the closing statement for the home sale and bank statements showing the deposit.","what_lenders_check":"Lenders are concerned with verifying the legitimate source of funds and ensuring they are not borrowed or otherwise encumbered. They will confirm the funds are readily available and properly sourced.","required_facts":["Sale of personal residence","Net proceeds verification","Bank statements","Unencumbered funds"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/can-i-use-retirement-funds-from-a-401-k-as-equity-injection-for-a-750-000-business-purchas"},{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"Is it possible to use a second mortgage on my personal residence as an equity injection for a $1.5 million business acquisition?","url":"https://dealroom.so/sba-7a/questions/is-it-possible-to-use-a-second-mortgage-on-my-personal-residence-as-an-equity-injection-fo"},{"question":"How much cash must I personally inject for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition"},{"question":"What are the acceptable sources for my cash equity injection beyond personal savings?","url":"https://dealroom.so/sba-7a/questions/what-are-the-acceptable-sources-for-my-cash-equity-injection-beyond-personal-savings"},{"question":"What is the SBA's minimum required equity injection percentage for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Primary Residence","url":"https://dealroom.so/glossary/primary-residence"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Indemnification from the Seller","url":"https://dealroom.so/glossary/indemnification-from-the-seller"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-if-my-equity-injection-includes-funds-from-the-sale-of-my-primary-residence-that-occu","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}