In the FHA policy handbook, HUD defines a gift as contributions of cash or equity with no expectation of repayment
We have started a new blog-post series that will answer some of the most frequently asked questions relating to FHA-insured mortgage loans. Today’s question is: Can my FHA down payment be gifted from a family member in 2017?
The short answer is yes, in 2019 the minimum required down payment for an FHA loan (which is 3.5%) can be gifted from a family member, a friend, an employer, or some other approved source. This is all spelled out in HUD Handbook 4000.1, the Single Family Housing Policy Handbook.
With that simple answer out of the way, let’s take a more in-depth look at FHA down payment gift rules and procedures.
According to the Department of Housing and Urban Development, which manages the FHA loan program, borrowers must make a minimum down payment of 3.5% when using this program. Specifically, that’s 3.5% of the home’s purchase price or appraised value, whichever is less. This relatively low down payment is partly what attracts people to the program in the first place.
The good news is that this upfront investment does not have to come out of the home buyer’s pocket. The FHA down payment can be gifted from a family member or other approved donor, as defined by HUD guidelines and requirements for 2017. Lire la suite « In the FHA policy handbook, HUD defines a gift as contributions of cash or equity with no expectation of repayment » →
