FHA Mortgages require a 3.5% down payment in North Carolina… that’s much cheaper than the 5% you might be stuck paying on a Conventional Loan! The good news is that FHA allows for the down payment to be a gift. The Gift funds must come from a “person you have demonstrated a relationship with.” Can FHA Gift Funds Come From A Spouse? Well, a current or previous spouse can “gift” the money for a FHA loan.
The other “trick” is that the money for the Gift Funds must be sourced. This means that we must prove that the person who is giving the funds has evidence that they had the money in the bank for several months, or we must document where they borrowed the money from.
The FHA Guidelines say that we must be able to determine that the gift funds were not provided by an unacceptable source and were the donor’s own funds. The the Donor borrowed the gift funds, we have to prove that the funds were borrowed from an acceptable source (meaning not from any one in the transaction and not from our bank) and that the borrower is NOT on the loan documents.
There are a couple of other avenues to get money besides borrowing from a spouse, have you looked at the NC Housing Grant of 3%?
You can also use a Tax Refund, a Bonus – or the Sale of an Asset: would you rather have a Bass Boat or a house? For some guys, it comes down to this!! (If you are thinking of this, please call us for details of how to document it!)
As you might know, you do NOT have to be a First Time Homebuyer to use FHA financing… but if you want to take advantage of the 3% Down Payment Assistance from NCHFA, you must not have owned a home as your primary residence in the last 3 years, and you need two credit reports over 640. FHA is also a great mortgage program for many single parents because of it’s flexibility. There are some qualifying details that are specific to Single Parents that you should consider, and please make SPECIAL NOTE of the Documentation we need
Have questions about, Can FHA Gift Funds Come From A Spouse, Qualifying for a FHA Mortgage, or Programs for Single Moms available in NC? Call Steve and Eleanor Thorne 919 649 5058 – we’d love to give you a quote for today’s best mortgage rates!