5.B.1.aa. Closing Cost and Minimum Cash Investment Requirements
Under most FHA programs, the borrower is required to make a minimum downpayment into the transaction of at least 3.5% of the lesser of the appraised value of the property or the sales price.
Additionally, the borrower must have sufficient funds to cover borrower-paid closing costs and fees at the time of settlement. Funds used to cover the required minimum downpayment, as well as closing costs and fees, must come from acceptable sources and must be verified and properly documented.
References: For more information on
5.B.1.bb. Acceptable Sources of Borrower Funds
The table below lists the acceptable sources of borrower funds and a reference for locating additional information on each source.
|Acceptable Source of Funds||Reference|
|See HUD 4155.1 5.B.2|
||See HUD 4155.1 5.B.3|
||See HUD 4155.1 5.B.4 and HUD 4155.1 5.B.5|
||See HUD 4155.1 5.B.6|
||See HUD 4155.1 5.B.7|
||See HUD 4155.1 5.B.8|