I plan to buy a house in the next two months. The down payment will be entirely a gift. I know this is ok with FHA but I thought I should put the money in my account now, so that it looks like it is from my savings. I want to do this for the following reason: I am currently renting for $800 per month. I want to get approved for the FHA max in my area which would put my monthly payments at about $2100. My income can support the necessary rations. My concern is a lender will look at the large jump in monthly expense and be reluctant to go that high. If I could say I have been saving the money ($1000 per month) they may be more willing to approve the max amount. Does anybody know if this is something I should be concerned with? And, how long does the money have to be in my account?
The money would need to be in your account for at least 2 months prior to apllying. However even though there would be some payment shock it should not affect your approval. If your ratios are within the guidelines then there should be no problem. Also, don't forget that the first thing that a mortgage company is going to try to do is get your loan approved through automated underwriting, therefore eliminating your current housing debt issue. Either way it should not really be an issue if your income is sufficient for the loan requested. Keep in mind that underwriters look for compensating factors in a loan as well, such as job stability and longevity, savings patterns, limited credit use, other income in household. These compensating facotrs are basically used to increase the underwriters comfort level even though they are not officially used for qualification purposes. Good luck
Just wondering...If your income supports that big of a jump in payment, shouldn't you already have most of the payment in the bank instead of having to get it as a "gift"? We are broke jokes, but always have "a little extra" in the bank. If you can afford a 2000+ house payment, you should have at least 6k in the bank for the 3 percent payment (assuming this is a 200,000.00 home. You can then receive the closing costs as a gift and you would be all set. Did you know that is all that is required is 3%?
Had the money back in January but used it to pay down debt, pay off old items, etc. and down payment for a car. I am assuming 3% based on what I have read. Do you know different?
