If you are planning on getting married soon and buying a home — then why not use your registry as a Down Payment Registry. This is a nice way to help add to your down payment funds. FHA has a Bridal Registry Program that allows the funds you receive as wedding gifts to be used towards your down payment.
Guidelines for the Bridal Registry Program
This program was originally introduced in 1996 as a way for FHA to promote homeownership. For many years this program sat almost dormant, but in the last several years with the economy tightening up newlyweds have been getting creative on saving for down payments. Keep in mind originally this program was only allowed by banks, then in 1997 FHA modified the program allowing new flexible options and for brokers to participate.
Breaking it down to several easy steps:
- Open a savings account at your bank prior to the wedding
- Family and friends will be given the banking information where the gifts will be deposited
- The entire amount of the gifts are allowed to 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
So, what is required from your lender when it comes time to purchase? Just provide proof of your savings account named “Bridal Registry Account” and it’s that simple!
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