Category Archives: Closing Costs
FHA Loan Reader Question: Down Payment Funds for FHA Mortgages
A reader asks, “Just for clarification, can tax credits be used in calculating the required down payment? I have always been told they can not. Also if they use a credit card for a deposit it can not be used in the calculation. Is this correct?” Tax credits are not included in the FHA’s list
Reader Question: FHA Down Payment Requirements
A reader asks, “I am in the process of buying a home and trying to get an FHA loan. The mortgage company said we could no longer use gift money for down payment that we had to have the money in our bank account for 60 days. We got a gift of $30,000 to put
FHA Loan Reader Questions: Seller “Assistance” Limits
We always encourage people to ask us questions about the FHA home loan process in our comments section, and one thing that definitely helps us to answer them properly is to provide as much specific detail about your question as possible. One reader asks, “Applying for an FHA Loan and was told that the assistance
FHA Down Payments and Seller Concessions
A reader asks, “It is my understanding the buyer must pay at least 3.5% as a down payment and the buyer could not contribute more than 3.5% of the purchase price. Is this so?” It is true that all FHA new purchase home loans require at least 3.5% down. This is known as a minimum
Does the FHA Provide Down Payment Assistance?
Recently we posted about FHA rules for down payments. For all FHA new purchase home loans, there is a minimum down payment of 3.5%. Borrowers are required to make this down payment above and beyond any closing costs and related fees that may be required to be paid up front. Some borrowers may have a
FHA Loans: Can I Use a Power of Attorney to Close?
The FHA loan process can be a long and winding road before getting to the closing date, and not every transaction goes as smoothly as hoped. While many FHA borrowers fully anticipate showing up on closing day to sign final paperwork, render any payments due and take possession of the property, sometimes life gets in
FHA Loans and Minimum Cash Investment Requirements
Borrowers new to FHA loans soon learn about the requirements to qualify for the loans, which include what the FHA calls a “minimum cash investment”, which is essentially a down payment of at least 3.5% of “the lesser of the appraised value of the property or the sales price.” But the down payment isn’t the
FHA Loans and Down Payment Assistance
FHA home loans require a “minimum investment” or down payment from the borrower in order to be approved. The amount of the down payment for FHA insured loans at the time of this writing is a minimum 3.5% of the price of the home. Some loans may require more due to certain factors, but 3.5%
Am I Ready For An FHA Home Loan?
Buying a home with an FHA insured mortgage is an important investment, and many borrowers at the start of their journey not knowing whether they are ready for their entry into home ownership. We’ve said time and again that the best course of action is to take the advice of financial experts who recommend preparing
FHA Loans and Earnest Money Verification
When a house hunter finds a home they want to make a serious offer on, they move out of one phase of the home buying process and into another. The shopping phase is what some view as the cost-free part of finding a home to buy with an FHA insured mortgage. Once the right property
