What better gift than a NEW HOME?!?
Ok - so maybe you can't actually register for a house but you can register for down payment money to buy a house!
Here are two ways you can do this:
- Set up your own Bridal Home Registry program.
- Follow the FHA Bridal Registry program.
The second way, the FHA Bridal Registry program, introduced in 1996 by the U.S. Department of Housing and Urban Development, lets you receive money as a wedding present that can be used towards the downpayment on a home. Guests; family, friends, co-workers; can make gift payments into an interest bearing account on your behalf. Your gifts earn interest and can be used towards an FHA loan, which is a popular loan to use today because of its low 3.5 percent downpayment requirements.
Here are the FHA Bridal Registry Program facts:
- There is no requirement that you be married prior to closing on your new home so you can start this account as a single!
- Bring this HUD letter to your local bank and open a savings account — as a Bridal Registry Account — prior to the wedding.
- Friends and family will be given the banking information where the gifts will be deposited. According to the program, funds may be deposited by friends and relatives directly into the Bridal Registry Account, or given by cash or check to the couples or individuals for deposit.
- Maintain a ledger (register) listing the dollar amount, name of the donor(s), and date for each monetary gift given to the bridal registry.
- The bride/groom must supply copies of the bridal registry bank statements to their mortgage lender, verifying the deposits showing in their Bridal Registry ledger.
- Anyone with an interest in the purchase of the home cannot be party to the gift funds. (You can not put your own money in.)
- All of the gift funds can go towards the FHA required 3.5 percent down payment.
- We get it. Plans change. Things don't pan out. The money in the Bridal Registry Account for a downpayment on a home can simply be withdrawn and used for something else if the houes purchase plans change.
If you are looking for a local bank or lender that can help you with this, contact me and I will be happy to direct you.
In addition to setting up the gift money account, I suggest you (and your significant other) meet with a lender for a free consultation to understand the FHA financing requirements. Paperwork, credit score, closing costs... Get your head around this BEFORE you are tied up in the whirl wind of wedding planning and you will be on track for a smooth purchase and the home ownership dream!
