Down payment gift rules for FHA mortgages

November 06, 2020 by Dan Green

FHA mortgages are mortgages backed by the Federal Housing Administration. The FHA’s mission is to make U.S. homes easier to buy, and more affordable for everyone.

One way in which the FHA fulfills its mission is by making it easy for buyers to use cash gifts for down payment on a home.

There are fewer restrictions as compared to conventional loans.

For example, with FHA mortgages, 100 percent of a buyer’s down payment can come in the form of a gift. This rule applies to all homes, regardless of the number of units.

The FHA also allows cash gifts to come from a friend.

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