What are some ways to get closing cost assistance when purchasing a home? I can accept up to 6% from seller.?

Posted on Jan 14, 2023 in FHA Information

Question by JohnPau2010: Does lenders every give home loans with ZERO closing costs ?
1) Are there any banks which can give home loans without charging us any fees, order abortion etc ?

2)They are already making 3 times our loan price at the end of the 30 years, treatment why do they still take the other fees ? (originating, about it closing….etc)
Then they should give us an option if you stay with the same bank for “x” years we will refund the closing costs

Best answer:

Answer by Ryan M
1) Nope
2) Because if you refi with someone else OR if you pay off the loan early, then they don’t make all that money.

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Question by Renaisannce Man: What are some ways to get closing cost assistance when purchasing a home? I can accept up to 6% from seller.?
I have been approved for an FHA loan. I can come up with the 3% that I have to put down. I have found the ideal home and I have been thinking about making an offer. It is very affordable for me as far as making the monthly mortgage payments but I don’t have the estimated 5K it’s going to cost to settle at this time. I know I can accept gift money…anyone have any other suggestions that could make this work? I do have a real estate agent.

Best answer:

Answer by mister_galager
Make the offer and in the offer ask that the seller pay all closing costs.

It’s a buyers market, information pills and if the home has been on the market for a while, the seller may accept it.

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5 Comments

  1. Some state housing authorities have programs available that offer assistance in purchasing a home. Check your state.

    Some cities have programs, too. Check there.

    Ask the seller to pay the closing costs. This might need to be added to the sales price, which in today’s market, can cause problems.

    See if Nehemiah is still available in your area/circumstance. (http://www.getdownpayment.com) Nehemiah is legit, even if it may seem too-good-to-be-true. But the IRS and FHA have made their programs more difficult to use.

    See if you qualify for employer assistance where you work.

    Hope one of these ideas works!

  2. First of all FHA does not allow you to pay for certain fees, but watch out the Lender just “renames” them ok?

    You should be consulting with your Realtor and it should be in writing on the sales contract so the lender knows how to process and close the loan.

    The Sales Contract should contain EVERYTHING in writing.
    All you have to do, is tell your agent you want the maximum amount of seller credit allowed to be written and offered in the contract. If your agent doesn’t know how much this amount is, he/she should contact a loan officer to find out.

    If your agent advises you against this, ask why? If you aren’t satisfied with this answer, tell your agent you would like to find another agent you feel more comfortable with and you’ll prob. have to sign something, go to the broker of the Agent if you get any crap. Your agent is getting a commission prob. 3% of the sales price, so you are paying your realtor to work for you in your best behalf.
    On the flip side of the coin, think about how bad you want this place. The worse the sellers can do is come back with a counter offer or reject your offer, more likely they’ll counter.
    Good luck.

  3. Ya know your Realtor isn’t doing his or her job, if you don’t know the answer to your own question. Seller contribution of $ 5,000 would be acceptable depending on the sales price. If the home is priced correctly, and your Realtor should take the time to show you that is it priced correctly for the market, then make an offer and ask for seller contributions.

  4. Absolutely ask the seller to pay! The worst they can do is say no. So just write your offer like this:

    Purchase price to be $ xxx.
    Initial deposit to be $ xxx.
    Total down payment to be $ xxx.
    Seller to contribute $ 5000 toward buyer’s closing costs.

    They might make a counter offer and raise the purchase price to cover the money they’re kicking in, but if you love the house and it was priced well to begin with, it might be worth it to you if that’s the only way you can buy the house.

  5. First, DO NOT consult your Realtor about your loan. Every Realtor thinks that because they can list and sell a house they are experts in mortgages. Talk to a mortgage expert…. and I would talk to more than one. Compare costs, rates, everything. And sellers can pay for all NON-Recurring costs on an FHA.

    And about mortgage companies renaming fees…. FHA doens’t allow processing fees, administration fees, broker underwriting fees, etc… but since a broker cannot work for free just like I am sure none of the borrowers out there work for free, they either get it in a higher rate for more “rebate” or they charge discount points.