The rules for tracing the source of down payment money on an FHA loan are REALLY specific. What we call "sourcing funds" causes problems all the time.
There is a little-known loophole for newly married couples called the "Bridal Registry Account."
Here’s how it works—3 simple steps:
- Couple opens a savings account prior to the wedding
- Gifts are deposited
- All of the 3.5% down payment can come from these gift funds
No gift letters. No paper trails. Just a simple savings account labeled “bridal registry account” and the borrowers are on their way to having the wedding present of their dreams.