Check Out All of
These Little-Known Sources for FHA Down Payment!
"I'd like to buy a home but don't have the money for the down
payment or closing costs!" There are a lot of lesser-known
alternative sources of funds that are acceptable to FHA!
-
Gift Funds - Family, close friends
(with no financial interest), employers, and charitable
organizations (with no financial interest) are acceptable
donors.
-
Loans from Immediate Family - Unsecured or
secured against the subject property. Payment must be
calculated in ratios.
-
Secured Loans - Can be collateralized by
investment accounts or real property. Payments on loans
against deposited funds (401K, etc.) aren’t considered in
ratios.
-
Trade Equity - Borrower can trade real
property as part of cash investment. (i.e. boat)
-
Sale of Personal Property - Requires third
party estimate of worth and proof of sale (car, boat,
motorcycle, eBay).
-
Bridal Registry Accounts - Account is
opened prior to wedding to allow family and friends to
deposit cash gifts.
-
Sweat Equity - Labor performed or materials
furnished by the borrower before closing on existing or new
construction.
-
Commission from Sale - Family member, who
is a licensed real estate agent and entitled to the
commission from the sale, can gift commission to borrower.
-
Rent Credit - When purchasing a home
currently being rented, the amount of rental payments that
exceed the fair market rent can be considered part of the
cash investment.
Additional details and documentation requirements apply to each
source but all are legitimate and workable. |
