Down payment for an FHA loan?
I have just recently paid off a car and a credit card. I have very little cash. I just found an excellent house that is incredibly cheap. I need the 3% down to get the FHA loan. I have a Premier Line of Credit with a 3% interest rate. The Premier Line of Credit is basically cash and I can withdraw cash on this account. Could I use this for the down payment?
- 1 decade agoBest Answer
FHA down doesn't have to be seasoned, but I don't think you'll get approved if you pull it out of credit.
It can be gifted (they'll have to fill out a form to indicate it is a gift and not a loan).Source(s): Purchasing currently using FHA
- Anonymous1 decade ago
Pulling out the money may not be a problem. Confide in your loan officer, this debt can be included in your ratio, but the underwriter will want to see the particulars of the debt including; increased balance, rate and your new monthly payment.
Why is the loan officer not offering a grant program with the FHA? Nehemiah or Sovereign Grant Alliance are still doable despite the recent ruling. The band does not go into effect until October 1 of 2008.
These grants are funds from the seller and can cover down payment and closing costs with approval from the seller.
- RachelLv 61 decade ago
If you used that as the down payment, it would probably hurt your chances of getting approved for the mortgage, because it will show up on your credit report that you are taking out more debt. Your best bet would be to go to your local bank and meet with them. Tell them your plan and see if you can get approved even with this additional debt that you would be taking out. Good luck!
- EmanonLv 61 decade ago
There is another way to get the 3% needed. You can accept a gift from your parents for the 3% down, IF they are in a position to gift it to you.
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- 1 decade ago
you can use a check from anything for the down payment. you just want to be careful about anything going on your credit report while you are in the process of buying the house. also, check out if your county offers any grant programs. you can usually ask your mortgage provider. the grant my county offers must be paid back when you sell the house, but it accrues NO interest and if you never sell your house, you never have to pay it back.
- Expert8675309Lv 71 decade ago
You cannot borrow the down payment.
A down payment for an FHA loan must meet "seasoning" guidelines.
Other suggestions that posters have offered here, such as hiding it from the underwriter, etc...is mortgage fraud.
Check with your loan officer to see if there are any special programs in your area that can help with down payment assistance.
These are typically referred to as "bond" programs.
If your loan officer acts like they have never heard of them, find a new loan officer b/c the one that you are dealing with is very inexperienced.