Posted by JT-IN on May 21, 2007 at 05:59:19:
I have done a number of them where the buyer put in nothing… The normal FHA DP is 3%, so with you getting 6%, something is askew here somewhere…
Your only other alternative would be for an outright gift of the funds needed from a close friend or relative. A Gift Letter is required stating that it is a gift not a loan and verification of their funds shown. Short of that, you need to do the 401K maneuver.
Need to raise $5,000 to buy a home through FHA - Posted by tradedate
Posted by tradedate on May 20, 2007 at 14:12:21:
Hello all. I need a legal way to raise $5,000.00 towards down payment for an FHA purchase in PA. This would be my first home purchase. My wife and I found the perfect home. I have a very short time frame of less than a month.Avg credit score 600.
Any good suggestions? Thanks in advance.
Down Payment Assistance Programs - Posted by JT-IN
Posted by JT-IN on May 20, 2007 at 18:13:03:
There are legitimate down payment assistance programs whereby the seller can gift between 3% and 10% to the Buyer, via the non-profit assistance programs. They usually charge a fee of $ 500 to 1000 for their handling of the funds and admin of this part of the deal. I just completed one where I gifted appx 6K to the buyer.
Usually sellers are OK with this approach as long as they are getting full price, or sometimes even a little more than asking price, and their net proceeds are the same as what they otherwise would have accepted. The property must also appraise for the amount of purchase, including the gift.
You can read more about this program at the link below:
http://www.fha-home-loans.com/neighborhood_gold_down_payment_assistance_program.htm
Re: Down Payment Assistance Programs - Posted by tradedate
Posted by tradedate on May 20, 2007 at 22:23:30:
Thanks. I don’t think this will work, though. I’m already doing 6% sellers assist, but FHA requires that the buyer is able to show that 2.25% of the amount is coming from the buyer. I have a 401k plan that I could borrow up to $9,000.00 from which would more than cover what I need, but first I need to satisfy an existing loan of about $5,000, before I can take another loan.