Down payment loans

[gamblerx15]

Are there currently any fha loans that allow you to borrow the down payment money?

My broker tells me there are fha loans out there that will allow it if its disclosed?

after reading all the threads there this sounds a bit off.

[Anonymous]

I'm not really sure how that works but i know some loans are acceptable for down payment. I have student loans and can take out "extra" for living expenses. We were told this is an acceptable method as long as we can verify it.

I know there are down payment assistance programs but i think that's different than what you're asking? Also, you can avoid paying down payment if you and the home are eligible for a USDA loan.

[medicgrrl]

Could you be more specific on how you plan on borrowing the funds?  Are you talking about a soft second from your local housing authority, a 401k loan, family, etc?

[debtfree09]

I just talked to an FHA lender and he told me that you can borrow up to 96.5% of the value of the house.  If you have enough money available you can roll your closing costs into your mortgage so you don't have to pay them upfront.  Is that maybe what you were thinking of?

[Anonymous]

Pretty sure the OP means the other 3.5% that you need to have for downpayment

[debtfree09]

The lender we have talked to said as long as  you are under that 96.5% loan to value ratio you do not have to come up with a down payment.

[medicgrrl]

A 96.5% loan to value (LTV) means that you are borrowing 96.5% of the sales price.  Therefore your down payment is the remaining 3.5% needed to equal 100% of the sales price. 

[debtfree09]

Maybe its different when you are refiniancing.  We are asking to refinance our higher interest loan and were told we did not have to come up with any money.

[medicgrrl]

That is correct.  When you are refinancing there is no down payment.  Then it is just a matter of whether you have sufficient equity in your home.  The OP was questioning borrowing funds for a down payment...which is used on purchases

[gamblerx15]

yes I meant the 3.5% downpayment, My loan officer is trying to get me to borrow it for my down payment, we just found out we make to much to qualify for the utah housing grant which was going to pay for our down. so we are currently about 10k short lol ( we didnt plan on having to come up with this and have been mass paying down our cc to make our dti look good ).