{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-from-a-borrower-s-personal-real-e","api_url":"https://dealroom.so/api/public/questions/what-specific-documentation-is-required-to-verify-equity-from-a-borrower-s-personal-real-e","question":"What specific documentation is required to verify equity from a borrower's personal real estate appraisal?","topic":"Equity Injection Verification","audience":"lender","bot_mode":"lender","short_answer":"To verify equity from personal real estate contributed, a lender requires a current independent appraisal, a title search, and documentation confirming the borrower's ownership and any existing liens.","rule":"When personal real estate is contributed as non-cash equity, the lender must establish its fair market value via an independent appraisal. Additionally, a title report confirms ownership and identifies any existing liens or encumbrances, ensuring the property's unencumbered value is accurately calculated for equity credit. The borrower's deed and mortgage statements are also reviewed.","example":"A borrower contributes a vacant commercial lot they own, appraised at $200,000, with an existing $50,000 mortgage. The lender obtains a full appraisal, a title commitment showing the $50,000 lien, and the borrower's deed. This allows $150,000 in equity credit, subject to proper lien perfection.","what_lenders_check":"Lenders must ensure the valuation is accurate and independent, that the borrower has clear title, and that any existing liens are accounted for in calculating net equity. Proper documentation is essential to support the equity injection and to ensure the collateral can be properly secured.","required_facts":["Independent appraisal","Title search","Property ownership","Existing liens","Unencumbered value"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","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":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"How does a lender verify equity injection funds originating from a newly established business bank account?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-originating-from-a-newly-established-busin"},{"question":"Can a borrower's investment in leasehold improvements prior to loan closing count towards the equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-leasehold-improvements-prior-to-loan-closing-count-towards-"},{"question":"What specific documentation is required to verify the source of gifted equity injection funds from a foreign family member?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-the-source-of-gifted-equity-injection-fu"},{"question":"If a borrower contributes equipment as equity, how does the lender verify its fair market value?","url":"https://dealroom.so/for-lenders/questions/if-a-borrower-contributes-equipment-as-equity-how-does-the-lender-verify-its-fair-market-v"},{"question":"What specific conditions must a personal loan from a non-owner family member meet to count as equity injection for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-must-a-personal-loan-from-a-non-owner-family-member-meet-to-count"},{"question":"How does a lender verify the source of gifted equity injection funds from a foreign national?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-gifted-equity-injection-funds-from-a-foreign-nation"}],"related_terms":[{"term":"Real Estate Appraisal","url":"https://dealroom.so/glossary/real-estate-appraisal"},{"term":"Personal real estate","url":"https://dealroom.so/glossary/personal-real-estate"},{"term":"Commercial real estate appraisal","url":"https://dealroom.so/glossary/commercial-real-estate-appraisal"},{"term":"Equity in real estate","url":"https://dealroom.so/glossary/equity-in-real-estate"},{"term":"Unencumbered personal real estate","url":"https://dealroom.so/glossary/unencumbered-personal-real-estate"},{"term":"Personal real estate collateral","url":"https://dealroom.so/glossary/personal-real-estate-collateral"}],"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-from-a-borrower-s-personal-real-e","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."]}