Can the down payment come from a gift on a FHA loan?

The required minimum down payment on an FHA loan is 3.5%.

So on a $100,000 house that would be $3500.

Your down payment can come from the following sources:

Your own funds-must be documented such as in a bank account, CD, money market, 401K, IRA, stocks, bonds, mutual fund, etc.  Cash on hand or cash saved at home (also known as mattress money) is NOT allowed unliess it can be documented such as you received a bonus from work and you went and cashed the check,  

Gift Funds-Your down payment can be gifted and the following donors are allowable:

• Relatives of the borrower
• Borrower's employer of labor union
• Charitable Organizations
• Government Agencies
• A close friend with a clearly defined interest in the borrower 

A gift letter will be required.  All gift letters must include the following:

• Name, address and phone number of the donor and the borrower
• Dollar amount of the gift
• Relationship between donor and borrower
• Specification that no repayment is required
• Signatures of both the donor and borrower  

Evidence that gift came from the donor's personal account and transfer of funds or evidence of receipt must be documented.

If you have any questions please call 602 993-0000 or email sunnations@cox.net