Charlotte NC Home Buyers Get Assistance for Loan Closing Costs
Charlotte NC Home Buyers Get Assistance for Loan Closing
Costs
Are you hoping to buy a Charlotte
NC home but not sure if you will have enough money for a down payment and
closing costs? In a recent post, I offered some solutions for the
problem of not having much money for a down payment. Read that post about no
down payment loans here.
Now what about the loan closing costs? Here are some ways to minimize your
investment in closing costs if you are a Charlotte
NC home buyer.
Problem: Lack of Funds for Closing Costs
Ask the seller for assistance with closing costs. Most loan
programs will allow the seller to pay a buyer’s loan closing costs with certain
restrictions on the amount. Various loan programs with allowable seller-paid
closing costs are listed below.
- FHA 6% of the contract sales price
- VA 4% of the contract sales price
- Conventional with 90% or less loan to value 6% of the contract sales
price
- Conventional with 95% loan to value 3% of the contract sales
price
Ask your loan officer to modify the loan interest rate for
lender-paid closing costs. That’s right. The lender can increase the
interest rate of the loan to cover a credit to you for closing costs. At
today’s low interest rates, your monthly payment may increase very little to
accommodate lender-paid closing costs. Lender-paid costs might be available up
to 2.5% of the contract sales price. This is a useful tool to use when the
seller doesn’t have enough equity in his home to pay your closing costs.
Want to know more about closing cost assistance in Charlotte
NC? Click
here to contact me about your eligibility for one of these
loans.
Copyright 2011. Carol Fox. Allen Tate Realtors. *Charlotte NC Home
Buyers Get Assistance for Loan Closing Costs*