Are you
planning to get married and
buy a home in Colorado, but wonder where your down payment funds will come from?
FHA has a Bridal Registry program
where the money you receive as a wedding present can be used towards
your down payment. Just like registering at a specialty or department
store, the FHA Bridal Registry program allows you to register with a lender. Then your friends and family are able to make gift payments into an interest bearing account on your behalf.
It's a win win! Not only can your gifts earn interest, but they can be used as a down payment towards an FHA Loan.
Bridal Registry Guidelines
Bridal Registry Accounts were originally introduced in 1996, but still remain a little known fact when it comes to down payment assistance.
The misunderstanding of how this program works might be the fact that
it was originally only allowed by banks. Soon after, FHA modified the
program and offered new flexible options and the opportunity for the
newlywed to set up the account at any bank. Plus, newlyweds are now
able to make deposits on their own from the gifts they receive.
Here's how it works in 3 simple steps:
- You will open a savings account at your bank prior to the wedding
- Friends and family will be given the banking information where the gifts will be deposited
- All of the gift funds can go towards the FHA required 3.5% down payment
- Anyone with an interest in the purchase cannot be party to the gift funds (i.e. realtor)
- There is no requirement that you be married prior to closing on your new home
Another huge advantage is that there
are no gift letters or other documentation required other than proof of
your savings account named "bridal registry account." It's that simple!