WEDDING REGISTRY FOR HOME DOWNPAYMENT Information brought to you by THE BURLACE TEAM -Dawn Burlace, Realtor® Atlantic Shores Real Estate 772-444-6696 Engaged Couples Instead of getting a lot of useless items or repeats of items you already have start a NEST EGG Home Down Payment Registry.You have a choice.
You can allow your guests to give the usual gifts such as a small appliance, frame or platter (that will never be used), or you can request that they contribute to your Nest Egg Home Down Payment Registry.
a Home Down Payment Registry account allows couples that are getting married to open an FDIC insured banking account with a participating bank into which family and friends can directly deposit cash wedding gifts. These deposits are then used for down payment assistance for the purchase of a home.
These proceeds can be used even by unmarried couples allowing you to purchase your home prior to the wedding.
We will walk you through the process and make the whole experience a very simple and no hassle event. We will put you in contact with great lenders to get you pre-approved for your home loan.
You set up your very own home down payment registry bank account, into which your gift money is deposited. Next, we take you out and help you find your dream home. The paperwork is processed for final loan approval we set up the closing. Then you move into your home. It's as simple as that.
Collecting Gift Money
Months prior to your bridal shower and wedding, include with your invitations the information for your registry letting your guests know to contribute to your home down payment fund.
Funds can be mailed directly to you or to your chosen participating bank to be deposited into your home down payment registry account. This account will take the guesswork out of gift selection. These gifts can be given with the assurance that the donors are providing you with an opportunity to purchase your first home.
Your family and friends will often give more than they normally would have because they know that the money will be used for the purchase of your new home.
You are not obligated to use the money in the Home Down Payment Registry Account for a down payment on a home.
You control how the funds will be used and if your plans change, you can simply withdraw the money and use it for something else.
Also, there is no requirement that the bridal couple be married prior to closing.
Opening your Home Down Payment Registry Account
FHA policy permits cash gifts to be used as an acceptable source of funds for the down payment. Previously, federal regulations prevented sources of these gifts from those other than immediate family members.
Home Down Payment Registry accounts now make gifts from friends and family permissible. A supervised bridal registry account makes the process acceptable to FHA and of benefit to the wedding couple. Now wedding gifts can be used to purchase a new home.
Contact a local bank or use an online service to open your Home Down Payment Registry Account
Apply for a pre-approval either through a mortgage lender (we have several we can recommend) or your bank.
We can then start to search for your home in your comfortable purchase price range and specific needs.
Once we find your ideal home we will help you put in and negotiate the offer and guide you throughout the entire home buying process.
The entire closing process will be seamless between you, the seller the title company and participating lender.
After you close on a home, THE BURLACE TEAM will provide you with “just moved” postcards and invitations to a Housewarming party sponsored by THE BURLACE TEAM that can be mailed out to anyone that gave you a monetary gift so that they can see what you purchased with their gift.
Have your Family & Friends deposit money in a registry towards a down payment on your home. Your loved ones will be thrilled they don't have to go searching for items on a registry and in many instances you will actually end up getting a larger gift because people will be excited to know they are helping you get into a home.
There is HUD program that allows couples to collect cash gifts from friends and family into a down-payment on a home when using a mortgage loan backed by the Federal Housing Administration (FHA).
The federal government has a program to help newlyweds-to-be facilitate the application of their families’ wedding gifts toward their down-payments via the FHA Bridal Registry Program. With mortgage interest rates continuing to remain at historic lows, many newlyweds would rather have 100 $100 (or more) gifts (which would aggregate enough money for a 3.5% down-payment on a $275,000 home) than have 100 knicknacks and other smaller items they will never use.
The FHA Bridal Registry Program allows for more flexibility, compared to other gifts that can be applied towards a mortgage. Traditional donations for FHA loans require that any gifted funds from friends and family be documented. This documentation process requires that you provide the relationship between the family member and the person receiving the gift, document where the person gifting originally received the funds from, and provide letters from the benefactor stating that funds are intended as a gift and not a loan.
With the FHA Bridal Registry Program, it doesn't make sense for the borrower to document each of the potentially hundreds of different small cash gifts. With this program the benefactor will not have to provide more than a lender and borrower certification of funds.
How It Works First you must open a new savings account at your local bank prior to the wedding, and have it tagged by your bank (if possible) as your wedding savings account, or bridal registry account, etc. Then provide the details to your family and friends, so they can make gift payments into this account on your behalf or deposit funds directly into the account. Your gifts can earn interest and can be used towards a down-payment, when using an FHA mortgage loan.
Other important points:
Maintain a ledger listing the dollar amount, name of the donor, and date for each monetary gift given.
The bride/groom must supply copies of the bridal registry bank statements to their mortgage lender, verifying the deposits shown in their Bridal Registry ledger.
Bridal couples are not obligated to use the money in the Bridal Registry account for a down- payment on a home. The couples control how the funds will be used, and if plans change, the money can simply be withdrawn and used for something else.
This must be a separate savings account for this purpose and couples cannot “co-mingle” these funds into their own checking/savings accounts.
In addition to the ledger, the bride/groom and mortgage loan officer must also provide a letter — at the time of the mortgage application — that states all monetary gifts were made by friends/relatives who do not have a financial interest in the real estate transaction, nor were any gifts given by the seller of the home or the real estate agent(s).
However, HUD actually allows the program to be used before the wedding, by as-yet-unmarried couples. Contact us for more information The Burlace Team 772-444-6696
There are many down payment wedding registry sites. Some require a percentage be paid of the gifts received. You can also open up a crowdsource account, a bank account, a paypal account a facebook fund account. Research and find out what works best for your situation. Below is a link with some useful information: www.interest.com/mortgage/advice/crowdsourcing-down-payment/