Are you planning to get married and buy a home in Seattle, but wonder from where your down payment funds will come?
FHA has a Bridal Registry program where the money you receive as a wedding present can be used towards your down payment. Just like registering at a specialty or department store, the FHA Bridal Registry program allows you to register with a lender. Then your friends and family are able to make gift payments into an interest bearing account on your behalf.
It's a win-win! Not only can your gifts earn interest, but they can be used as a down payment towards an FHA Loan.
Bridal Registry Guidelines
Bridal Registry Accounts were originally introduced in 1996, but still remain a little known fact when it comes to down payment assistance. The misunderstanding of how this program works might be the fact that it was originally only allowed by banks. Soon after, FHA modified the program and offered new flexible options and the opportunity for the newlywed to set up the account at any bank. Plus, newlyweds are now able to make deposits on their own from the gifts they receive.
Here's how it works in 3 simple steps:
--You will open a savings account at your bank prior to the wedding
--Friends and family will be given the banking information where the gifts will be deposited
--All of the gift funds can go towards the FHA required 3.5% down payment.
Anyone with an interest in the purchase cannot be party to the gift funds (i.e. realtor. There is no requirement that you be married prior to closing on your new home.
Another huge advantage is that there are no gift letters or other documentation required other than proof of your savings account named "bridal registry account."
It's that simple!
Please contact me for a list of preferred lenders who can help set this up for you.