Posts Tagged ‘FHA Mortgage’

What is FHA gift money?

February 4, 2009

Gift money for an FHA loan in Claremont, Upland, Pomona, anywhere in Los Angeles or California, can be used to cover all downpayment and closing costs.  It must come from a family member, “documented” close friend, employer, church or other non-profit.  It can’t come from your FHA lender, the parties involved or someone you only have a “casual” business relationship with.  Allowable FHA Closing costs will range from 3-4.5% of the purchase price (some fees are fixed, so mathematically, the lower the price the greater the percentage of the purchase price they are).  FHA allows the seller to pay closing costs of up to 6%.  Therefore, you will hardly ever get to the full 6%, so a soundly negotiated deal can get all your closing costs covered.  All you need is the 3.5% downpayment per the new FHA guidelines for 2009.  If you can get the full 6%, take it and use it to help yourself do an FHA buydown for a lower interest rate.  FHA is an absolutely great way to go and you do not have to be a first-time buyer.