Down Payment Guidelines
Generally a
borrower must have a minimum of 5% down on a purchase that can be
verified from acceptable sources. The only exception are for
first time home buyers,
100% financing (such as
VA loans) and FHA
financing (3% down).
Acceptable
sources of funds include checking/savings accounts, money from IRAs and
Keogh accounts, sale of assets, stocks and other investments and
borrowed funds against a secured asset (i.e. car, real estate, life
insurance, etc.).
FHA, in
addition, permits gifts from family members, non-profit agencies, or
government agencies as well as the aforementioned sources.
However, not
acceptable sources of funds include the following: cash on hand,
proceeds from a personal or unsecured loan, cash advance from a credit
card, or any cash for which the source cannot be verified
Recently FNMA
and FHLMC are offering flexible first time home buyer programs which
permit a borrower to use funds from a gift, a loan, cash advance from a
credit card, or cash on hand.
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