Tag Archive for: closing costs

Can’t Use Business Funds For Down Payment Without CPA Letter

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CPA Letter For Use Of Business Funds This is a reminder that lenders do not allow borrowers to use business funds (from any “business account”) towards a down payment or […]Read More

Lender Credits For Closing Costs Again – Effect on Payment?

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Yesterday, we recommended Lender Credits for closing costs for borrowers who are tight on cash. We pointed out how such credits result in higher rates, but we failed to mention […]Read More

Using Lender Credits For Closing Costs; Just Need Down Payment

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We had a borrower come to us over the weekend who wanted to buy a $400,000 home with FHA financing, and she had exactly $14,000 for a down payment (just […]Read More

Realtor Commissions: Credited for Closing Costs/Gift for Down Payment

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Most people know that Realtor commissions can be credited for any and all closing costs. The costs include all nonrecurring fees (title, escrow, appraisal, etc.), and recurring costs such as […]Read More

Closing Cost Credits for Impounds and Transfer Taxes Too

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We frequently remind Realtors that credits for closing costs can be for both recurring and non-recurring closing costs. Credits should always just be for “closing costs” without delineating “recurring” and […]Read More

Almost Anybody Can Be a Relative for “Gifting” Purposes

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We repeat this often b/c such a large proportion of our borrowers purchase properties with “gift funds” for down payments and closing costs. A “donor” or a person gifting funds […]Read More

What To Do If Seller Closing Costs Are Too High

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We recently received a purchase contract with a $600,000 price, and $26,000 in seller-credits. The issue? The $26,000 seller credit exceeds our $19,000 estimate of closing costs (closing costs are […]Read More

Unlimited Rate, Payment, Closing Cost Scenarios = Our Job

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We had borrowers leave their loan officer and come to us (they found us on YELP) a few months ago because their loan officer was too busy to provide them […]Read More

Closing Cost Credits Too Large? What To Watch For & Do?

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Yesterday, we mentioned that closing cost credits can equal 6% (or even 9%) of the purchase price. Hence, for a $500,000 purchase, it is completely acceptable to have the seller […]Read More

Closing Cost Credits Can = 6%; 2% for Investors; Commissions Too

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Sellers can credit up to 6% of the sales price, in most cases, as a credit for ALL closing costs – including non-recurring and recurring fees. This includes transfer taxes. […]Read More

Using Higher Rate To Pay for Closing Costs; Lender Credits

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Many homebuyers are tight on cash and barely able to come up with down payment funds. We often offer such buyers lender-credits for closing costs. Closing costs for a “no […]Read More