Thursday, September 24, 2009

No Money Out Of Your Pocket On This Purchase Scenario...

Hello,

Did you realize that when buying a house from an immediate family member - the buyer doesn't have to come out of pocket for a down payment with an FHA loan?

...this is because the guidelines allow the seller to "gift" equity to the buyer.

So, the 3.5% down payment on an FHA loan can be a gift from the seller. ...in addition to this, the seller can also pay the buyers closing costs, and pre paid expenses (taxes and insurance).

Neat, huh!

I hope you have a good day today. Thanks for reading!


Brett

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