As many couples are getting married later – after they’ve been together for a while – they may already have most of the typical things needed to establish their home together: furniture, plates, decor items, and small appliances. Do you relate to this situation? Yet your guests wish to get you something memorable and to contribute to your successful marriage.
One suggestion is to create a “bridal registry” to help with the down payment of your first home together. You sign up to receive cash gifts which will fund your FHA home loan down payment. Any gift donations your family and friends give you will go directly into an interest-bearing savings account. Then you can use it as part of the 3.5% down payment on an FHA home mortgage loan. Imagine how quickly your “nest egg” can grow.
Here’s a look at what it takes to make this happen:
- Open a savings account at your own bank before the wedding (there are no specific banks you must use)
- You give the bank name to the guests just like you’d share the gift registry information
- The money given can be used for the FHA mortgage loan down payment
- You can add your own money to the pot, making the down payment grow even faster
- Anyone involved in the home purchase (like a real estate agent) cannot gift the account
- You don’t have to be married before the closing in order to take part
- FHA doesn’t require any gift letters or proof other than the “bridal registry account” name on the savings account
You might even suggest the home or area in which you are seeking to buy a home, with a picture of your dream home that you are aiming for. Your guests will get the idea.
Bridal Registry accounts have been around since 1996, though many people have no idea this down payment assistance program even exists. Your mortgage professional can give you even more information and guidance.