Home › Homes Stories
FHA rule opens door for home buyers
STORY TOOLS 
More from Homes StoriesSaving money for a downpayment on a house can be the biggest obstacle to homeownership for first-time buyers. But, since 1996, a rule put in place by the Federal Housing Administration (FHA) has made this hurdle easier to cross. Although the rule has been in place some time, many first-time home buyers — new to the idea of homeownership — may not be aware of this opportunity.
The rule allows family members to lend downpayment funds for FHA loans. (Under old FHA guidelines, downpayment funds could only be accepted from family members as gifts, with no repayment strings attached.) With a loan from a family member, more potential home buyers who can afford monthly payments have an opportunity to qualify for an FHA loan and achieve the dream of homeownership.
The FHA rule provides parents and grandparents who want to help their children, but cannot simply give away funds, an opportunity to assist. Because the rule change allows family members to set their own repayment terms and interest rates, the lending family member can create an interest-bearing investment for themselves.
For information on FHA loan programs and other affordable downpayment programs, consult a mortgage lender who will be able to assist you with easy-to-understand explanations to your home loan questions.
(Dawn Peck is the sales manager of the Ventura County Builder office of Countrywide Home Loans, a division of Countrywide Bank, FSB. She can be reached at 389-1558. The office is at 2351 Lockwood Dr. No. 202, Oxnard.)
(Requires free registration.)
Article discussions on this site are to support community debates of issues related to our stories and editorials.
Discussions should not stray from the subject of the story or editorial.
We do not allow the following:
We reserve the right to delete threads and/or ban users for these or other reasons we deem necessary.
Opinions are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.