Savings Qualifications
When it comes to loan savings qualifications, FHA loans work hard to ensure that this process will be as simple as possible for you. The FHA does not even require you to have a savings or checking account. Unlike other lenders, you don't have to have your purchase money in a bank account for a certain amount of time-once the money is there, it is yours to use, immediately.
FHA also offers certain generous benefits, such as giving you the down payment on your home as a gift, if you can get help from a family member or a non-profit organization. You do not have to pay this money back!
You will just need to document exactly where this money is coming from, so we can make sure everything checks out. Whoever gives you the money will be required to submit a bank statement which will prove they had the funds to give you the money.
Another way to get money for a down payment would be through the withdrawal of money from your 401k or retirement account. If you choose to borrow money against an existing account, you will be required to qualify for the monthly repayment amount.
If you have more than one bank account, the FHA will require you to submit three months of statements from your bank. These statements will be used to guarantee that your bills are being balanced and managed, quickly and completely. If your statements show any unusually large deposits, you may be required to explain their origin. Likewise, your previous debts will be measured against your monthly payments to make sure that they are synchronized. Your deposits will also need to match closely to your net paychecks each month.
When you apply for your loan, we request that you provide the past three months of your bank statements for review. If any NSF's (non-sufficient funds) appear on your statements, you can offer a reasonable explanation as to why, for consideration.
If you choose to save your money at home instead of in a savings account, you will need to provide a letter explaining how and why you chose to do this. If you have sold any items recently, such as furniture, etc. you will be required to provide a document or receipt verifying the sale of said item. This will allow you to use this money to purchase your home.
If you are not buying a single home, but rather a property with 3 or 4 different units, FHA requests that you have "Reserve" savings which will cover at least 3 months of your future mortgage payments.
