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The FHA Bridal Registry, a Toaster or a Home?

The bridal registry has drastically changed since first created by Marshall Fields Department Store in 1924. Early bridal registries were a means of sharing selected china and silver patterns with wedding guests.  Using a registry avoided duplicate gifts and provided a means for sharing the couples wants and needs with family and friends.

The FHA Bridal Registry was created to provide couples planning to get married an opportunity to amass monetary gifts for the down payment on a home. As lenders have tightened underwriting guidelines, the FHA 30-year fixed rate mortgage has become the most popular home loan in the market today. Some of the reasons for FHA’s popularity include the low 3½ % down payment, less stringent credit requirements, and high debt to income guidelines.

Although in recent years, cash has become the gift of choice for many newlywed couples, many gift givers prefer to give an item by which they may be remembered. Can any gift compare to helping the couple own their own home?

Lenders require that all down payments be sourced. The underwriter wants to be certain that you didn’t borrow the money, as a loan has to be repaid. Also, underwriters are leery of cash.

FHA designed the program for maximum flexibility and simplicity. It is recommended that the FHA Bridal Registry be created prior to sending out wedding invitations. Many couples create their registry about 6 months prior to their big day. A great way to inform your guests is through a wordpress bridal page. Many couples are creating these blogs to record all the memories leading up to their wedding. By including an insert with a link to your bridal page in you invitation, your guests can learn about your FHA Bridal Registry and dream of owning your own home in a subtle way.

In order to set up your FHA Bridal Registry:

  • Open an interest baring savings account at the bank of your choice
  • Your friends and relatives can make gift deposits directly into the account
  • These gift funds can be applied to your 3.5% deposit required by FHA.
  • You do not have to wait until after the wedding to close on your new home
  • *Anyone with an interest in the purchase cannot be party to the gift funds (i.e. seller, mortgage consultant, realtor, etc.)

The FHA Bridal Registry will take the guesswork out of the gift selection while providing friends and relatives with the assurance they are giving the gift the wedding couple really want and need. The program provides a rare opportunity for newlyweds to own their dream home.

This program is not limited to couples intending to be marries. A similar account may be set up for any occasion where gifts are typically received. It is important to note, these funds belong to the recipient and may be used for anything of the recipients’ choice.

Owning a home has never been more affordable. If you would like more information about this outstanding program, please call me @ 775-250-4421 or email me @ dougkaller@renomortgagecoach.com.