FHA Sources of Down Payment

Gift funds - May be used for 100% of the borrower's closing costs and down payment - eligible donors include close relatives, a close friend with a clearly defined interest in the borrower, a corporation established for charitable purposes, a borrower's employer or labor union, Federal, State or Local Government agency.

Cash from private savings clubs - Savings clubs established and used by various ethnic groups.

Commission from sale - A licensed Realtor may use commission income from the sale of the property being purchased. If the borrower is a licensed real estate agent entitled to a real estate commission from the sale of the property being purchased, those funds may be used as part of the cash investment, a letter from the Real Estate Agency must state how much will be credited to the Sales Agent (after any commission split or deduction of other fees) at closing on the HUD-1.

Bridal Registry - Monetary gifts from friends and family - not restricted to couples getting married but can be applied to situations where such gifts typically are received. Only "first-time" homebuyers are eligible for this program.

Loans from family members

Loans secured by an asset - Funds may be borrowed for the total required investment as long as satisfactory evidence is provided that the funds are fully secured (collateralized) by investment accounts or real property. Sources of acceptable and unacceptable collateral (asset) for loans used to assist in the required down payment or closing costs include, but are not limited to, those shown below.

• Investment Accounts
• Real Property (i.e., cars, trucks, boats)

Please Call (813) 507-0296 for More Information