Posted on: 02nd Sep, 2013 02:07 am
I know FHA does not allow any type of loan for down payment. But the employer for whom I work offers a 4-year forgivable loan towards down payment or closing cost. Is this allowed by FHA?
The employer will have to give you the money as a gift and should be able to provide you with a gift letter. If that is not the case, then the lender will consider the funds as a loan and will not be ready to give you a FHA loan.
Hi Guest!
Welcome to the forums!
If the employer is giving you a loan for down payment, it means you will have to pay it off. The lender will not consider whether or not it is forgivable. In that case, your FHA loan may get rejected.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
If the employer is giving you a loan for down payment, it means you will have to pay it off. The lender will not consider whether or not it is forgivable. In that case, your FHA loan may get rejected.
Feel free to ask if you've further queries.
Sussane