At A Glance Fha’S Down Payment

FHA’S Down Payment
Prepared by: Mario Blautzik
AT A GLANCE
www.Maryland-fha-loans.com

Is
3.5%
Of the purchase price

Examples:
Purchase price $100,000
Down Payment
$3,500

Examples:
Down Payment
$7,000

Examples:
Down Payment
$12,500

Where can the down payment come from?
Borrower’s own funds
Savings,
Checking,
Cashing out 401K,
liquefying stocks, to name a few

Other Allowable Sources for down Payment

Loan or Grant from Government
Approved Agency

Loan or Grant from Government
Approved Agency
Montgomery County, Maryland has: HOC
Frederick County, Maryland has: NCIS
P.G. County, Maryland has: NSP
Counties across the nation are receiving GOVERNMENT funds to purchase foreclosed homes. Find out more go to
www.maryland-fha-loans.com

Allowable Sources forFHA’S Down Payment
Gift from Relative
Brother
Sister
Cousin
Long term friend
(must show that friend has a clearly defined interest in the borrower)

Documenting Deposits
FHA requires 2 month review of Assets
Large deposits – deposits above the net pay of the borrower appearing on the bank statements
MUST be SOURCED

Documenting Deposits
Is a major concern for underwriters. Any deposits that can not be no sourced through payroll checks will be scrutinized…..
To receive an Approval from a lender the underwriter must sign off on all aspects of the file

In short, if you are about to make a larger deposit than usual into your account,
let your lender know first.
Properly documentating deposits saves a lot of time and confusion.

Whocan not provide Down Payment
ANY 3RD PARTY ASSOCIATED WITH THE TRANSACTION
SELLERS
REALTORS
LOAN OFFICER
APPRAISER
TITLE AGENT

Conclusion
FHA’S DOWN PAYMENT IS
3.5%
Of the Purchase Price
Must come from borrower’s own funds
Or allowable source

For more information
Ask
Mario Blautzik
Senior Loan Officer
Cell 240 353 – 5102
Apply On-Line
FHAREMODEL@GMAIL.COM
Rockville, MD 20852
Last updated 8/01/09 information subject to change , call for current details