you can find all you need to know on the hud/first preston web site. www.hud.org. you cannot get and fha or 203k on all properties, some are uninsurance, which means fha will not lend.
Quote:On 2003-01-08 12:48, determined wrote:
Will the gov't assist with closing costs ? I know you can get an FHA loan or 203k to help fix it up but I want to minimize my closing costs as well.
Anybody know?determined,
Just wanted to amplify the response you already got from Vern.
Yes, usually you can ask a mortgage lender to roll the closing costs into the loan. Be careful if you are looking for an 80% LTV to avoid PMI. When you add the closing costs, you increase your loan amount. If this increased loan amount makes your LTV greater than 80%, you will be subject to PMI.
Now, to answer the question you really asked. YES, for HUD foreclosures, you can ask HUD to contribute up to 5% of the sale price for closing cost assistance. If HUD accepts your offer, but you don't need all of the 5%, then the excess is applied to your purchase price and reduces your mortgage loan. The 5% closing cost assistance can not be used for certain items including pre-paid escrows and interim interest.
Yes, you can roll your closing cost into the loan. However, you will have to pay higher fees in order to roll it all in together.
Thanks Vern!!!
Sorry for posting in the wrong forum
you can find all you need to know on the hud/first preston web site. www.hud.org. you cannot get and fha or 203k on all properties, some are uninsurance, which means fha will not lend.
Quote:On 2003-01-08 12:48, determined wrote:
Will the gov't assist with closing costs ? I know you can get an FHA loan or 203k to help fix it up but I want to minimize my closing costs as well.
Anybody know?determined,
Just wanted to amplify the response you already got from Vern.
Yes, usually you can ask a mortgage lender to roll the closing costs into the loan. Be careful if you are looking for an 80% LTV to avoid PMI. When you add the closing costs, you increase your loan amount. If this increased loan amount makes your LTV greater than 80%, you will be subject to PMI.
Now, to answer the question you really asked. YES, for HUD foreclosures, you can ask HUD to contribute up to 5% of the sale price for closing cost assistance. If HUD accepts your offer, but you don't need all of the 5%, then the excess is applied to your purchase price and reduces your mortgage loan. The 5% closing cost assistance can not be used for certain items including pre-paid escrows and interim interest.
FHA and 203k loans are only for owner occupants.
Thanks Dave!!!