Reply #18: You don't need to borrow the money (Advice for anyone pursuing FHA)

[Godhumor]

Find out the yearly taxes, so you get a better view of yoru monthly payment.

Does your state require that a year of taxes be filed in escrow? If so, add that to your closing.

That said, borrowed money is generally not allowed to be counted towards closing, as you must show money earned (When we closed, any deposit made over $1000 not attached to payroll or tax refund had to be explained with documentation.). However, you might be in luck, because FHA loan holders can allowed to pursue the 8K grant now to put towards closing:

http://portal.hud.gov/portal/page?_pageid=73,8026894&_dad=portal&_schema=PORTAL

"FHA's rules allowing state Housing Finance Agencies and certain non-profits to 'monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments."