Financing in 53226>Question Details

Mary, Home Buyer in 53226

Can your entire down payment be a gift from family?

Asked by Mary, 53226 Mon Apr 12, 2010

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Bob McClure’s answer
good afternoon mary....yes...but ...if you are financing fha..the entrie 3.5% can come from the family...any amt. can...if you are financing conventionally........then any amount can be...however..if it is less than a 20% would still need at least 5% of your own regards.....bob mcclure- first preferred mortgage- southfield, michigan...
1 vote Thank Flag Link Mon Apr 12, 2010
Donna and Dick, you are slightly incorrect here. The upfront MIP did you up, and it went up to 2.25%. However, the monthly MIP is lower than what PMI would be if you are anything over 85% financing, so when you say their MIP is higher, that is a bit misleading. There is no up-front PMI on a conventional loan.
Other than that, the answers you have received are correct.
0 votes Thank Flag Link Tue Apr 13, 2010
Answer to your question is --"YES"
But in case of FHA funding.
0 votes Thank Flag Link Tue Apr 13, 2010
ABSOLUTELY, if you go thru FHA. And they now only require 3.5% down.

However their MIP (same as pvt,mtg.ins.) is higher ... it is being raised to 2.5%.

If you have 5% of your own funds, I would prefer conventional. ALSO PROVIDING you have a credit score of at least 740. Below this, FHA is your only choice, but they have a cutoff for credit scores as well.

Remember, family means just what it says. For instance a fiance' cannot be considered a relative
0 votes Thank Flag Link Mon Apr 12, 2010
FHA will allow the full 3.5% to come from a family member or other documented relationship.
Conventional has a 5% buyer requirement IF the total down payment is less than 20%.

If you have any quesitons please shoot me an email or message.
0 votes Thank Flag Link Mon Apr 12, 2010
Yes-depending on the type of mortgage loan program you are using. It would be best if you present this question to your loan officer. Of course, you still have time to take advantage of the home buyer credit if you get an accepted offer by April 30th (and close by June 30th) assuming you are a 1st time home buyer.

All the Best to you!!
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0 votes Thank Flag Link Mon Apr 12, 2010
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