October 20, 2020

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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 on our house. What are the rules for FHA?”

The FHA has specific rules covering gift funds for down payments. According to the HUD Homeownership Center Reference Guide, Chapter Two, Mortgage Credit Guidelines, the rules are clear:

“HUD does not approve down payment assistance programs in the form of gifts administered by charitable organizations. (HUD defines charitable organization as “an organization who has

Joe Wallace - Staff Writer

By Joe Wallace

March 20, 2012

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

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About FHANewsBlog.com
FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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