Did you know? Down Payment can include a Gift Option…
Did you know? Borrowers who need help with down payment and closing costs can receive gifts for part or all of it. This includes FHA, VA, USDA, and yes, even conventional.
Now conventional loans allow borrowers to receive the entire 5% down payment as a gift. Even the new 3% down conventional loans allow the entire down payment to come from gifts. Just remember for the 3% down, that at least one of the borrowers has to be considered a first time homebuyer (not owned a home within the past 3 years).
So where can these gifts come from? Buyers can accept gifts from a relative, which includes a spouse, child, or anyone else related by blood, marriage, adoption, or legal guardianship. Gifts may also be accepted from a fiance/fiancee or a domestic partner. FHA even allows employers to gift their employees for down payment or closing costs.
With these low rates, recently lowered FHA mortgage insurance, 3% down conventional, and several options to get needed down payments, there are a lot of reasons to get excited about the prospects for 2015!
Brian Smith, Senior Loan Advisor | Movement Mortgage, NMLS # 186247
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