FHA loan

[Anonymous]

Can i get a FHA loan if I have a downpayment and closing costs and that is it? No emergency funds?

I know that I don't have reserves but read that doesn't matter with an FHA. What % closing costs would I need and do they need to be seasoned in my bank account?

I don't want people to flame me, just tell me if you know that it would be possible. Thanks!

[Anonymous]

Yes, you can get a FHA loan. Additionally, the seller may be willing to pay a portion of your closing costs. Without knowing your jurisdiction, I can't give you an accurate % but likely around 3.0-4% for closing costs.

[Anonymous]

Thanks for information. I live in Fairfax County, va

[Anonymous]

Op here, does anyone else have experience with this? Does the down payment and closing costs have to be in my bank account for more than a couple months?

[Anonymous]

We just closed on an FHA loan for 450k. We make about 180k and at the time of the loan, we had about 8k in the bank and 40k in a 401k. We borrowed the down payment from the 401k. We were told that sellers can't pay closing for an FHA loan, but we were able to roll our closing costs into the loan.

i would recommend talking to a loan officer and seeing what they think about your current numbers.

[Anonymous]

Anonymous wrote:Op here, does anyone else have experience with this? Does the down payment and closing costs have to be in my bank account for more than a couple months?

Down payment and closing costs don't have to be in your account for months, but they want to see that you have a couple months reserves that could pay the mortgage if something came up. I believe funds in a 401k count toward those reserves.

You also need to know that any large amount of non-payroll funds that enter your account after you start the loan process will need extensive documentation, so if you have a relative contributing toward the costs, those funds should be in the account for several months before starting the loan process.

[Anonymous]

Anonymous wrote:We just closed on an FHA loan for 450k. We make about 180k and at the time of the loan, we had about 8k in the bank and 40k in a 401k. We borrowed the down payment from the 401k. We were told that sellers can't pay closing for an FHA loan, but we were able to roll our closing costs into the loan.

i would recommend talking to a loan officer and seeing what they think about your current numbers.

We closed on an FHA loan in June and needed 3 months of reserves of the mortgage in the bank and our sellers paid our closing costs.

[Anonymous]

If you're looking in the dc area, asking for sellers to pay your closing costs will often cause the sellers to go with another offer.

[REALTOR4U]

Anonymous wrote:

Anonymous wrote:Op here, does anyone else have experience with this? Does the down payment and closing costs have to be in my bank account for more than a couple months?

Down payment and closing costs don't have to be in your account for months, but they want to see that you have a couple months reserves that could pay the mortgage if something came up. I believe funds in a 401k count toward those reserves.

You also need to know that any large amount of non-payroll funds that enter your account after you start the loan process will need extensive documentation, so if you have a relative contributing toward the costs, those funds should be in the account for several months before starting the loan process.

OP- Talk with your loan officer for specifics. Lenders will want to see the funds in your account for at least two statement periods. If not, you may need o show where the funds came from.

[Anonymous]

Are you getting a gift? FHA doesn't require the funds to season for a couple months like conventional usually requires but you do have to provide proof of where they came from. So if they're from a non-family gift source then you would need them to sit.