A big issue that home buyers run into, especially first time home buyers, is not having enough money for a down payment and closing costs to use on the purchase of their new home.
There are several solutions to this problem available to you. In our Home Buying series, I am giving you several options to explore from some of the best MVP loan officers in the business, to help you achieve your home buying goals.
1 – That’s right, your family or close friends can gift you money to be used toward your down payment possibly other expenses associated with buying a home. According to Brian Cartee with New Story Lending, who can give you gift money varies depending on the type of loan you use, but in general, you can receive gift funds from a family member or close friend, no matter the loan you choose to purchase your primary residence.
2 – The loan you get determines how the money can be used. Brian tells me the with FHA and Conventional, the gift funds can be put toward your down payment, closing costs, or the reserve funds the lender requires you to have in the bank at closing. Even though down payments are not required for VA and USDA loans, you can use the gift money as a down payment so you have built in equity as soon as you sign the closing papers!
3 – If you’ve started the home buying process or are about to, do not get the gift funds yet! There is a specific way you have to go about obtaining the money. If someone wants to help you, talk to Brian first. He can give you the step by step process so you do it in the order the mortgage company requires.
Not all loans are created equal and all of them are not for everyone. If you want to know more about the different types of standard loans available, CLICK HERE for a brief synopsis, or reach out to Brian Cartee with New Story Lending. He can help you determine what will work best for you and your financial situation.
