I joined this forum because I am starting my journey towards becoming a first time homeowner in Missouri.
I've been talking to a local lender to get prequalified before looking for a house. I was finally prequalified but was told that my gift funds couldn't come from a grandparent in-law for an FHA loan because my husband will not be on the loan, just me. I was told that the funds for the down-payment would need to come from my 401k, since that's my only other option.
I wanted to see what people here say, to make sure I'm being told correctly, and also to see what my options are in regards to receiving money from my husbands grandparents to go towards our new home.
Thanks for any help you can offer!!
Yes, it's an FHA loan.
My husbands grandparents have offered to give us up to 20K, or whatever the max allowed amount is, to go towards our house.
Thanks for your help,
I'll contact him and ask him to clarify why the gift funds won't work.
What he told me was, "per FHA, the down payment cannot come from a grandparent – in law unless your spouse was on the loan."
I'm assuming you are speaking of the 401k loan. Take the money out of the 401k to put towards the mortgage. Then use the gift from your relative to pay off the 401k loan.