FHA Mortgage

[rcarter120]

I have been pre approved for an FHA Loan however I need 3.5 percent to pay down. I have half of the money but am in need of the other half. I'm thinking of getting a small loan to assist with the balance. Are their any loans that assist with about $3000 with low interest rates specifically ones that pull from experian since that's my highest score (703)?

[ShanetheMortgageMan]

Can't use non-secured borrowed funds for the down payment on FHA.  Need to save up the money yourself, borrow from your retirement (which is secured borrowed funds), get a gift from family, get a loan from family (can be secured against the real estate you are buying or even unsecured), or use local down payment assistance programs.

[rcarter120]

My lender informed me that I could get a loan but they would count it towards my debt to income ratio and I would have to provide length of time and monthly payments.

[ShanetheMortgageMan]

Your lender is misinformed.

http://portalapps.hud.gov/FHAFAQ/controllerServlet?method=showPopup&faqId=1-6KT-1035

Does FHA allow unsecured loans to be used toward the downpayment?

Funds obtained from unsecured loans cannot be used toward the downpayment. Unacceptable borrowed funds include signature loans, cash advances on credit cards, borrowing against household goods and furniture and other similar unsecured financing. Funds can be borrowed for the required downpayment as long as satisfactory evidence is provided that the funds are fully secured by investment accounts or real property.

[DallasLoanGuy]

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@rcarter120 wrote:

My lender informed me that I could get a loan but they would count it towards my debt to income ratio and I would have to provide length of time and monthly payments.

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the application asks if any of the down payment is borrowed.

is the lender going to ask you to say 'no' to that question?

[rcarter120]

Thanks you guys, I asked her those questions and you guys were right she said it can only be a secured loan if it's borrowed. I'm very thankful for your information if not I would've moved forward with getting a signature loan and not have been able to use it. I would've been pissed...

[ShanetheMortgageMan]

No problem, glad we saved you from a mistake.