Don’t Have Money For Closing Costs? Here’s How You Get It. June 24, 2007
Posted by Patti Click in First Time Home Buyers, Interesting Stuff, Mortgage Stuff, Real Estate.trackback
The number one thing I come across as a loan officer is that first time home buyers rarely have the funds for closing costs, or they may have the funds but they are tied up in IRA’s and 401k’s which I wouldn’t recommend tapping into unless absolutely necessary.
100% financing is widely available, but this does not cover the multitude of little fees that add up. Standard Closing Costs include things like: Transfer Taxes, Title Insurance, Appraisal cost, Home Owner’s Insurance, and certain “pre-paids” like your property taxes, a certain amount of which MUST be paid at closing.
It really is possible to get into a home for very little money out of pocket. You are going to need some money for things like the deposit to the seller and home inspection, but here’s how you get money for all that other stuff:
1. Seller Concessions: The market has changed! You, the buyer, are more in control than ever. A seller concession means the seller will credit you a certain percentage of the sales price at closing. Most loans will allow up to 3% of the sales price as a seller credit. On a $200,000 property that would be $6000.
2. Down Payment Assistance Programs: I work with them all! You can make up to $100,000 and still qualify for certain programs. These programs offer money towards closing and low interest rates. You are able to combine these programs with seller concessions.
3. Loans that allow you to borrow more than 100% of the sales price. There are some loan programs that will allow you to borrow up to 103% or even 105% of the sales price. I do not recommend this way to get money for closing unless you absolutely have to. The rates on these loans tend to be a little higher, plus you are borrowing more than what your new property is worth and that’s never a good idea! This is generally how those “no closing cost” programs you hear about work. Raise the interest rate slightly and credit back to you, but you shouldn’t pay a higher rate unless you have to.
How can I get a loan of 40,000.00, which include the balance of down payment and closing withing 30 days
Email me.
patriciacshawgo@gmail.com
I NEED MONEY TO COVER MY CLOSING COST,FAMILY & FRINDS DI NOT HAVE AY MONEY
WHAT CAN I DO?
Hello Jean,
I am a part owner in a real estate co. and the best advice to give to you is to have an agent who is trained in these matters and also who is able to think of the questions most people do not think of in everyday life. For example: if you are a baby sitter, it’s a good guess you never think of home loans or how to write up a real estate contract. Right? To help you getstarted though would be to ask if the seller’s are willing to pay some or even all closing cost depending on your offer price of a piece of property. You could even check with the housing and urban development office for a city grant program in your city. They usually forgive $1,000 for every year that you live on the property but usually that amount is no more than $5,000. Check with your lender as well for certain other programs to roll into your loan to help with closing cost too, afterall that’s what they are being paid for. Right? I hope this helps you get started and good luck.
I did not sell my existing home so i am renting it out but i do not have the closing cost money for the new home. What should i do or is there any help for me and my family to borrow the money for closing?I need at least $50,000.
I have the same question as #5. Please help.
To #5 and 6 Unfortunately, no, if you are renting out your existing property but don’t have the 3.5% minimum that would be required for FHA (or whatever loan program you are getting), there aren’t really any down payment assistance programs in place *right now* that would help with that. If seller funded down payment assistance (like Nehemiah & Ameridream) programs come back, that kind of thing would help you out.
Also, if you do have any equity in your existing home, it might be possible to get a home equity line of credit to get funds for a down payment. You’d want to do this before you are renting out your house.
Hope that helps!
My name is Yolanda Richardson I am a single parent with two kids and i’m tryen to get money for my closing cost and i should be closing within two weeks is there any help for me.
I have a usda loan and my house is worth 131,000 and usda give my 138,000 can i use the remaining loan to pay for my closing cost (PLEASE HELP)
I’m a first time home buyer. Isn’t there any programs to help with closing cost? I’m was approved for a fha loan with a 3% conssesion
I’m a first time Home Buyer My name is Lonnie. I a retired disabled male who presently lives in New York. I went to Florida April14, 2009 for my daughter’s graduation. On April 23, 2009 I saw the house of my dream in Poinciana FL. I had been pre approved some months earlier. To make sure I called my Lender. They confirmed I was pre approved 30,000 more than the sale price. The house is a short sale for 132,000. I was verbally told by the Lender all I needed to come up with is 8,000 for closing June 12, 2009 I was told the seller Bank had approved the sale of the House and we need to go to closing by June 30Th 2009. I have the 8,000. The Lender now wants me to come up with 17,500.00 …. All other requirements have been met. What can I do about closing cost in such a short period of time.
My name Dora Pryor my hme was recently lost due to foreclosure my father is buying my home with his V. A. loan we need help with closing cost can you reference me to some that will help us. I have been trying to take care of my parents so only my husband was working an I am on disability my Father is 82yrs and my mother is 80 yrs old my mother also had a massive stroke can you please give me some advise on how we can get the money for the closing cost. Thank you
and my god bless you.
I am a first time home buyer and I need to show I have closing cost money in bank to get approved by underwriting.I will have the money when we close but they want us to show we have the money in bank to approve us. I need 5000 asap how can I get it. It will be repaid at closing.
please i need help i haave a credit score that is low due to medical bills. please i need help i have a very good job just need a chance
how can i get help with closing cost and down payment being a first time home buyer
Hello I need help with some closing cost info. I already got 3% of the sales price to help with closing costs but my loan agent is telling me i will still need $3800. the price of the home is $89,000 are there any other options out there for me as a 1st time home buyer to help me pay the closing costs?
I have the same question as #15 and #3. Worried about loosing out on a very good deal because of not having closing costs.
Hello,
I’m really interested in know more about programs that can help us with closing costs, down payments, etc. We are first time home buyers. Please email me with more info.
Thank you
Maria
I’m in the process of closing on my home and i’m in need of $11,169.21 towards the closing cost. Where should i start looking?
Hello every one,
My name is Mrs Ruth I live here in USA and i am talking as the happiest person in the whole wild world today and i told my self that any lender that rescue my family from our poor situation, i will tell the name to the whole wild world and i am so happy to say that my family is back for good because i was in need a loan of $65,000 USD to start my life all over as i am a single mum with 2 kids and the whole world seemed like it was hanging on me until i met the GOD sent loan lender that changed my life and that of my family, a GOD fearing lender,Mr Fredrick Black bar Of PAY DAY LOAN, he was the savior GOD sent to rescue my family and at first i thought it was not going to be possible until i received my loan of $58,000 US dollars and i will advise any one who is in genuine need of a loan to contact Mr Fredrick Black bar via paydayloan49@yahoo.com
I’m in the process of closing on a loan and am in need of $4k. How can you help me?
My husband recently had his home foreclosed on by the bank, My name was not on his mortgage/we’ve only been married for the past 3 years, we are both retired and living on a fixed income, I have been trying to be proactive in finding somewhere to move…I was hoping to purchase a mobile home for us but have no money for the down payment (10% required) or for the closing costs (quote received that closing costs could run between $3,200.00 and $3,400.00). Is there any assistance for retired folk in our situation with down payment and closing costs needs?
I have the same question as #20… please how can you help me?
Hello. My husband and I are buying our second house. The home apprised at 225,000 and we are getting a loan for 180,000. Is there any type of assistance to help pay for closing cost? If it makes a difference my 4 yrs old some is disabled.
Please help me!! I need help to close for a house. Everything is set to sign off but I don’t have all the money.
I have the same question as # 20 & #22. I am preapproved for a loan, looking to place a bid on a house any day now and I am afraid to do so because I have less than I need in the bank. Is there any help for me? I need about 5000 to close. I dont want to miss our opportunity but I dont want to waste time anyone’s time. First time home buyer looking at HUD Homes.
I want to purchase my first home and need a downpayment and closing costs, which I do not have. I have very good to excellent credit and I make more than low-income, so I am disqualified for that type of help. How can I get these monies. Can they be rolled into the morgage?
Hello every one,
My name is Mrs Ruth I live here in USA and i am talking as the happiest person in the whole wild world today and i told my self that any lender that rescue my family from our poor situation, i will tell the name to the whole wild world and i am so happy to say that my family is back for good because i was in need a loan of $65,000 USD to start my life all over as i am a single mum with 2 kids and the whole world seemed like it was hanging on me until i met the GOD sent loan lender that changed my life and that of my family, a GOD fearing lender,Mr Bob Diamond Of CASH CORNER LOAN SERVICE, he was the savior GOD sent to rescue my family and at first i thought it was not going to be possible until i received my loan of $58,000 US dollars and i will advise any one who is in genuine need of a loan to contact Mr Bob Diamond via cashcorner.usa@hotmail.com
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