where do the funds for fha loans come from

Best answer


The good news is that the Department of Housing and Urban Development (HUD),which manages the program,allows a broad range of sources for down payment funds on FHA loans. The money can come from asavings or checking account,cash saved at home,stocks and bonds,and a number of other approved sources. But it cannot come from the seller.

People also ask


  • Where do down payment funds come from for FHA loans?

  • This is one of the most common sources for down payment funds among home buyers who use FHA loans. It鈥檚 also an acceptable source. These are funds that come from a borrower-held account in a 鈥渇inancial institution that allows for withdrawals and deposits,鈥?according to the handbook.

  • Does the FHA lend money?

  • The FHA doesn’t actually lend anyone money for a mortgage. The loan is issued by a bank or other financial institution that is approved by the FHA. 5.

  • What is an’FHA loan’?

  • What is ‘FHA Loan’. Designed for low-to-moderate income borrowers, FHA loans require lower minimum down payments and credit scores than many conventional loans. As of 2018, you can borrow up to 96.5% of the value of a home with an FHA loan, but you鈥檒l need a credit score of at least 580 to do so.

  • Is there an FHA website that makes loans?

  • FHA.com is a privately owned website, is not a government agency, and does not make loans. FHA.com is a privately owned website, is not a government agency, and does not make loans.

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