FHA Creative Financing?

Question

Brent Coombs · Answer

Here's a thought: SAVE up 3.5% (only!) deposit, and sell your car for needed reserves. Cheers...

Michael Evans · Answer

I was paid $15,000 to assume someone's FHA loan. Doesn't get much more creative than that.

Andrew Postell · Answer

@Jacob Stone FHA does allow "gift" funds.  They have to come from a direct family member.  So no 3rd cousins or anything like that.  So an investor would be out.  However, if someone would give you funds that would be in your bank account for several months it wouldn't be sourced.  Keep in mind that FHA loans can only be used for your primary home only.  Let me know if you have any further questions.  Thanks!

Michael Evans · Answer

This was 20 years ago (1997) and I found the deal in the newspaper. Guy owed $130k on it and was going to make a final payment of $20k to the bank to bring the balance down to $110k, so I could assume it and refinance it. I told him I could afford the monthly payment, so just give me $15k and he would keep $5k. We did the cash payment as a side Escrow to the FHA loan assumption. The process took less time than a normal purchase escrow. I just had to qualify financially to assume the loan, but I didn't pay anything. The seller paid all escrow costs.

Andrew Postell · Answer

@Jacob Stone what do you mean by "creative"?  What are you hoping to accomplish exactly?

FHA Creative Financing?

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