Is $5000 needed to purchase a home?

Hi,
I'm new here with a real estate question. I have been pre-approved/pre-qualified for a home loan..first time buyer. The lender I'm working with told me that I need to have $5000 in my bank account as a reserve (FHA Program). He said I can accept the...

$5000 as a gift from someone and just simply give it back to them once I settle/go to closing. He said once the person gives me the $5000 gift, his company needs the bank statement of that person to verify those funds are available in their account. This sounds CRAZY to me. Who would give a lender their bank statement if this does not pertain to them directly? Has anyone else here been told to do this? Are there any lenders here?

Yes, that does sound crazy to me as well. The point of them (generally) making sure that you have the reserve amount is to be sure that if you experience some financial trouble, you have some cash on hand.

However, I'm not an expert in real estate, and for something as important as a home purchase, especially in today's real estate market, I'd highly recommend getting a few different opinions before moving forward on the deal.

Good luck.

I'm not too familiar with this market. Because of the massive amounts of scams you should first do a couple of things. What is the name of your lender and where is it located. Did you receive a solicitation via e-mail? Call or check the Better Business Bureau's website (http://www.bbb.org/).... More importantly if you've given your "lender" ANY personal information even a date of birth check with the BBB on what you should do. Generally speaking, if it's too good to be true, it probably is. The BBB will be more than happy to help you find a legitimate lender. I know what it's like to be dealing with these 'scam artists' as I've had my bank account information stolen before. It's always better to err on the safe side. Good luck and let us know how things go. :-) -S

Any time you go into a business deal a good rule of thumb is,"Always cover your butt." No matter how careful you are, people can and will scam you anyway they can.
Be suspicious of EVERYTHING!! Take nothing for granted. Sign nothing unless you know for sure what it is. Don't give any details except what is pertinant to the issues at hand. Your information is exactly that. YOURS! If this lender needs any more info than you are comfortable in giving than scout out someone else. Alarm bells are going off for a reason.
On the money side, of course the bigger the down payment the less the mortgage. I think first timers only require 5% down if I'm correct but again double check. A reputable mortgage broker will find you the best mortgage for your situation and income level. Have your lawyer help you. It may cost more up front but it could save you thousands in the long run.
Good Luck.

This is common, so common infact people will lease you their money so that it looks like you have enough cash reserves to make your mortgage, if something comes up.

They just want proof that you can pay.

no. and they shouldn't have access to your account either. They should be paid by the people hiring them to sell their home only. not you. ask someone they work with if it is their real estate company's normal requirement. they may be scamming others too. The amount needed as a down for your loan depends entirely on the amount of the house and the loan.