After getting married, many couples move on to purchase a new home. Wouldn’t it be great if wedding guests could contribute to a couple’s down payment on their new home as a wedding gift? Actually, they can! FHA has homeownership bridal registry accounts that allow people to do exactly that!
How Homeownership Bridal Registry Accounts Work
Engaged couples should contact their mortgage lender to set up homeownership bridal registry accounts. The lender will establish the account at a financial institution that is supervised by a government agency. The information on this account would then be provided to friends and family, along with instructions on how to make gift deposits.
What Happens When It Comes Time to Buy
Once the newlywed couple is ready to buy a home, the funds in the homeownership bridal registry account can then be used towards the down payment and/or closing costs on an FHA mortgage. The funds are considered gift money, which is allowed by FHA. The lender will be asked to certify that, to the best of their knowledge, the funds deposited were from individuals who have no financial interest in the property. Additionally, a bank statement must be provided for underwriting review of the deposits made to the account.
Benefits of Homeownership Bridal Registry Accounts
Homeownership bridal registry accounts are a great way for newlyweds to get help from friends and family on the purchase of their new home together. FHA is one of the few mortgage programs that allow gifted funds to be used towards a home purchase, and a bridal registry account can make it easier to receive gifted funds from many sources without the cumbersome paperwork that would normally be required for each gift. Any authorized lender can assist with setting up an account and with obtaining an FHA mortgage. Contact me today for additional information!
