Spring is just around the corner, and that means it is wedding season. Many newlyweds would love to purchase a home, but just don’t have enough savings to cover the down payment and closing costs. Weddings aren’t cheap, and even the most frugal of couples can find themselves short of the cash reserves required to qualify for a home loan.
But engaged couples short on cash savings shouldn’t close the door on the possibility of a purchasing a home. FHA guidelines now allow for some creativity regarding how newlyweds can come up with the cash needed to purchase a home.
The Federal Housing Authority, the government agency that regulates FHA loans, is now allowing Down Payment Wedding Registries as an easy and straightforward way to build up the cash reserves required to buy a home. FHA loans are the most popular type of loan for first time buyers because these loans allow the lowest down payment requirement- 3.5%. These loans are also common among first time buyers because the underwriting guidelines are generally less restrictive than conventional loans. What this means for buyers is that FHA loans are typically easier to qualify for than a conventional loan.
What couples will need to do is find a professional Down Payment Wedding Registry service to create their wedding gift account. Many of these registries can be located with a simple Internet search. A helpful search tip is to look for a registry that pays interests on your gift money and charges low fees for the registry services.
It’s very important to make sure the down payment registry works with an FDIC insured bank. Also, ensure that the services are approved by FHA rules, allowing the wedding cash gifts to be counted as "cash" for a house down payment.
A money saving tip is to enlist the help of friends and family members to create and to send the gift request notices. By doing this yourself you can reduce fees charged by the wedding registry service. With the power of social media like Facebook and Twitter, couples should have no problem getting the word out about their dream of buying a new home, and finding family and friends willing to help.
If you know of anyone who is engaged, email me their contact information at firstname.lastname@example.org, and I will be happy to talk with them about the home buying process. I have an elite team of lenders, inspectors, insurance providers, and home service companies that help ensure the home buying experience is first class.