If you’re getting married and plan on a Bridal Registry, there’s good news for you.
You can set up a ‘Downpayment Registry’ and have family and friends dump some cash in there for you which can later be used towards the FHA required Downpayment on a Home! This isn’t a new program at all; . ..it’s been around since 1996
But homebuyers are taking advantage of it m
ore these days due to the difficulties involved with putting enough money away for a home purchase in this tougher economy. In fact in 1997 HUD came forward with further clarification which streamlined the program.
Here are the essentials:
(i) Open a ‘Downpayment Bridal Registry’ called a ‘Bridal Registry Account’ Bank account. This account is a custodial savings account where all deposits made are used to fund the down-payment on a home.
(ii) Give your family & friends the account information.
(iii) Even cash deposits into that account are acceptable!
(iv) You don’t have to use ALL the money that ends up in the account towards your home purchase.
(v) You don’t even need to be married before you close on your home to use the money that accumulates in that account.
(vi) The typical FHA restriction of sourcing of funds whereby the relationship between the homebuyers and the Gift-Giver, proof of where the funds came from and other annoying procedures, are bypassed. All that’s needed is a Lender & Borrower certification! Cash is fine too!
(vii) The only folks excluded from being able to deposit money into that account are those that are party to the transaction.
(viii) Good news for those single homebuyers also! This convenience isn’t just for people getting married. The FHA allows their gift registry to be used for any other ‘special’ occasion for which gift funds might typically be received by someone including Graduations, Birthdays and so on.
Contact the featured Loan Officer or Real Estate Agent on this Blog for more details!