FHA Cash to Close Savings Plan – Alternative to FHA Down Payment Assistance 411
Borrowers are eligible to save cash to close during the construction period. The following criteria and documentation must be adhered to:
- Borrowers must provide a written statement as to how they intend to save the funds to close.
- A monthly savings plan that identifies the borrower’s savings plan for the funds needed for closing must be completed in its entirety.
- This form must be included in the file submitted to Underwriting. The underwriter has the final decision of the borrower’s eligibility for this program.
- The funds saved must be held by a disinterested 3rd party. The funds cannot be held by Wells Fargo, but can be held by Wells Fargo Bank.
- Credit approval will be subject to the completion and verification of the approved savings plan.
- Gift funds are not allowed after Underwriting has issued a credit approval; however, exceptions to this may be allowed on a case-by-case basis.
- The underwriter must document the file accordingly. All funds must be saved in accordance with the approved savings plan.
The Cash to Close 411!The FHA cash to close savings plan is a way to get pre-approved for a Construction loan being built without having the liquid assets at the time of application. This is a great way to Buy Now & Save Later.