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Have Limited Down Payment Funds - FHA may be the loan for you!

January 25, 2016

FHA may be the loan for you!


FHA home loans are a great option for many reasons. One of the most popular features is that FHA only requires 3.5% down. This means that qualifying borrowers can purchase their family home by putting down as little as 3.5% of the purchase price (or appraisal, whichever is lower).


What some homebuyers dont realize is that the down payment can be a gift, making this an even more appealing loan for a cash-strapped borrower. FHA allows your family, and some select other sources, to give you your down payment, without having to access funds from your retirement account or savings. Conventional loans require the home buyer provide at least a portion of their own money for their down payment. Not so with an FHA home loan. This means you could obtain an FHA loan with no money out of your own pocket.


To make the gift of money acceptable for FHA, they do have some guidelines. First, FHA requires you provide a gift letter from your donor. The letter will need to state that your donor does not expect the money to be repaid, and it is truly a gift, along with some other vital information, such as the address of the property you are purchasing.


Here at GSF, we specialize in FHA loans and can help you navigate the guidelines easily, making your home purchase dreams come true. Contact us today!



Ron Meyer
GSF Mortgage Corporation
300 Patriot Dr.
Little Chute, WI 54140
(920) 788-9608
NMLS #222688 & 1018