|As for your savings, FHA is the easiest of
all types of loans to qualify. FHA does not require that you have a savings or checking
account and the money you will be using for your purchase does not have to be
"seasoned" (meaning in the bank for the last three months), like conventional
FHA will allow for a homebuyer to receive the down
payment for the purchase of a home as a "Gift" (meaning you do not have to
pay it back), from a family member or non-profit organization.
When purchasing a home with FHA financing and you are receiving a
"Gift", you must provide the complete papertrail of the money's being giving to
you. Typically, we will need the persons bank statement whom is giving you the money (to
prove that they had it to give int he first place)
Additionally, if you have a 401K or retirement account, you may be
able to draw or borrow from these funds for your down payment. If you must borrower
against an account, you must be able to qualify with the monthly repayment amount.
If you have a bank account(s), you will need to provide three months
of the complete bankstatments. FHA will review them to insure that you are balancing
and managing your bills properly. Also they will look to see that the debts match up to
your monthly payments and that the deposits are close to what you are netting on you
paycheck. If there are any large deposits, they will need to be explained.
An occasional "NSF" may suffice if there is proper
explanation as to why it occurred. At the time of your loan application, you should have
your last three months bank statements with you.
If you have recently sold an item or have your money saved at home,
you can still purchase a home now using your money. You will simply have to provide
documents verifying the sale of the item or write a budget letter explaining how and why
you save your money at home.
Should you be purchasing or refinancing a 3 or 4 unit property, FHA
requires that you have a minimum of 3 months of the future mortgage payments in savings.
These savings are called "Reserves".
Learn about how your Ratio's will affect your loan qualifications
with a FHA real estate mortgage loan by clicking