Can yhou sell a house under market value to a family member?

Yes, however most lenders will only lend 85% Loan to Value when buyer and seller are related.. you can get a "Gift of Equity"... so, If they sell you the home at market value, but gift you 15% - 20% equity, you should be ok.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

The transaction really won't be any different than if you were selling to a non-family member unless it is a short sale. What the lender looks at is the value of the home and the appraised value.