Uncle Sam Has Gift for Newlyweds
Searching for an alternative to the usual blender or crystal bowl wedding gift for that special young couple? Federal officials have a suggestion: cash for their dream house.
Housing and Urban Development Secretary Henry G. Cisneros unveiled a program Thursday that he said will give couples a head start in making a down payment on their first home.
“It’s the kind of help we used to get in an earlier era, when family members and friends pitched in to build the house . . . only they’re helping financially,” Cisneros said. “And it helps avoid the problems of the fourth avocado-colored blender.”
The federal program allows couples who are getting married to open an interest-bearing savings account at a Federal Housing Administration-approved bank. Family and friends can deposit cash gifts in the account toward a down payment, Cisneros said.
Of course, some couples receive cash as a wedding gift. But the new effort is intended to help couples avoid the urge to spend the wedding gift nest egg on something else, he said.
More than 30 lenders are participating, and Cisneros said he expects the idea to be adopted by non-FHA lenders as well.
In Southern California, participating lenders include Weyerhauser Mortgage Co. in Los Angeles, Kaufman & Broad Mortgage Co. in Woodland Hills and National Pacific Mortgage Co. in Anaheim.
“Many of our buyers are first-time buyers, and a lot of those are newlyweds,” said Jeff Charney, vice president of marketing at Kaufman & Broad. “And there’s not a much better wedding gift than a home.”
The program is available to people who qualify for FHA loans, which the agency said is practically any American. FHA home loans limit eligibility not by income but rather by the size of the loan--$157,000 is the maximum loan in high-cost housing areas, for example.
Thus, most people who take advantage of FHA loans are first-time home buyers, singles, young couples, minorities or immigrants, according to the agency.
Not everyone loves the idea.
“It’s tacky,” said Dennis Chupella, browsing at a Crate & Barrel store in Washington, D.C. “I understand that there are couples that can use the money more. But I think an individually purchased gift personalizes the whole gift-giving scenario.”
Giving money to such an account “just doesn’t work for me,” Chupella said.
Cisneros disagreed. “It’s no tackier than the fourth avocado blender.”
HUD does not match any funds but will waive a $200 fee for homeownership counseling for a registered couple, HUD spokeswoman Aylin Gonen said.
