To withdraw FHA funds after resigning to purchase a home, follow these steps: 1) Maintain proof of assets (savings, investments) to meet the 3.5% down payment requirement. 2) Provide a letter explaining resignation and demonstrating stable income sources (e.g., new job offer, freelance work, or retirement accounts). 3) Secure a mortgage lender’s approval by verifying reserves (typically 2-6 months of mortgage payments) through bank statements or retirement accounts. 4) Complete the FHA loan application with updated financial documents. The process requires underwriter approval based on current assets and income stability.

FHA loans require a minimum 3.5% down payment and 580+ credit score. Resigning impacts qualification by altering income verification. The U.S. Department of Housing and Urban Development (HUD) mandates that borrowers must have reserves equivalent to two months’ payments plus a 1% escrow buffer. According to 2023 FHA data, 68% of applicants with employment gaps face delays due to insufficient reserves. For example, a borrower resigning without a new job must show liquid assets covering 6 months’ payments. Lenders may accept retirement accounts (e.g., 401(k)) if withdrawal penalties are avoided. The Federal Housing Administration’s 2022 guidelines emphasize that self-employment or gig income requires 24 months of consistent earnings. Resigning mid-process may require a 90-day waiting period for new income documentation. Ultimately, FHA approval hinges on proving repayment capacity post-resignation through assets or alternative income streams.