Posted on: 14th Sep, 2008 07:29 am
We have a lease purchase agreement that at the end of one year gives us $10K for a down payment. Now that our time is up our mortgage lender says that we can't use all of the $10K for the down payment due to FHA guidelines for gifting. Is this really true? She says we can only use $5K of the $10 and the seller can contribute $4K to the closing costs. Wouldn't our original contract still be good and over ride what she says? This is just a big confusing mess and any help on where to find the current rules that apply to us would be helpful. Thanks
Welcome K-DUB,
As far as I have heard, the seller funded down payment assistance will not be available from October. When are you likely to close on the FHA loan? or have you just started shopping for the loan?
As far as I have heard, the seller funded down payment assistance will not be available from October. When are you likely to close on the FHA loan? or have you just started shopping for the loan?
Thanks, that is what I thought. We h ave already started the loan process, but they are asking us to come up with $7200 for the down payment, which isn't what we agreed to. I am just not sure how much wiggle room we have. If we don't have the $10K for the down payment that he promised then that affects the purchase price of the home and then trickles down to closing costs etc. I just wanted to make sure that it was still effective befoe I went back and pressed the issue.
The new law regarding FHA seller funded down payment assistance is effective from October. Since the lender has already started the loan process, I guess that's the reason he is asking you to pay it. Do you know when the loan is about to close?