FHA BRIDAL REGISTRY
HUD allows couples who are planning to get married to establish a bridal registry savings account to help them accumulate the down payment necessary to purchase first home together.
Bridal Registry Account is also available for other situations where an individual or individuals typically receive gifts.
The following documentation and procedures should be adhered to when using bridal registry funds to document assets:
*The borrowers must open an interest bearing savings account with a financial institution supervised by a federal or state agency
*The borrowers are responsible for providing information regarding the bridal registry account and how it works to friends and family
*The borrowers must provide a register showing the names of all donors and the dollar amount that has been deposited into the bridal registry account
*There is no requirement that the bridal couple be married prior to closing the mortgage loan
*The borrower must provide bank statements verifying all deposits into the bridal registry account
*All donations were from friends and relatives that they do not have a financial interest in the transaction; and No donations made from participants with a financial interest in the transaction. (Participants include the seller, Home Mortgage Consultant, builder, real estate agent, etc.)
THE FHA 411
This is just another creative way to find financial assistance to the downpayment of future homebuyers. What better way to ask for a donation towards your new house rather than getting another Blender or Toaster that you won’t need! Perfect for First Time Home Buyers!