So DH and I are putting in an offer on the house we want today, and are in the process of putting together the offer on paper with the REA.
We are doing an FHA loan, and have about 4.5% of the total cost of the house to put towards a down payment and closing costs. To get this house, we are asking for 5% sellers assist in closing costs in our initial offer (FHA allows up to 6%).
The REA told us that she would have to double check with our LO, that we may need to have a reserve in the bank to get approved in underwriting. We don't have a problem necessarily getting this reserve, since our REA told us that what we do with it the day after closing is up to us - we are able to ask either of our grandparents to "loan" us the money to have in the account until after closing, then give it back to them.
My question is - has anyone else been told this, that they need a reserve in the bank with an FHA loan? If so, how much (%-wise or actual number) did they require?