100% financing, but what about closing costs ? - Posted by Owenreg

Posted by Bruce Lawson on September 02, 2003 at 15:50:27:

Hi Frank,

There are a ton of different programs available, as far as closing being covered by the seller that is negotable just like anything in a real estate deal.

I would suggest you speak with your lender and ask for explanation on the various financing programs avaliable. There are programs that require no money out of pocket and have no PMI attached.


Bruce lawson

100% financing, but what about closing costs ? - Posted by Owenreg

Posted by Owenreg on August 21, 2003 at 21:19:56:

I have been looking to buy a property. A friend of mine told me that he could refer me to a lender that will do a 100% loan. So I understand that this particular lender will lend me 100% of the sale price/ or appraisal price of the house.

But I have no money for closing costs.

I have heard that I could structure the deal in a way that the seller can pay the closing costs, how is this done? How can structure the purchase so that a seller (who was otherwise unwilling to pay my closing costs), can now pay my closing costs ?

I can come up with 2 months PITI, and I don?t need a down payment because I am getting 100% financing. But what do I do about closing costs?

I know that there may be counseling agencies that may be able to help with this, BUT I am more interested in finding out how I can structure the deal so that the seller will pay my closing costs, and the only loan to be involved will be the 100% loan from the lender. I don?t know if I explained my self clearly enough. But please if you understand what I am trying to say, please show me the way.

Owen Regard

Re: 100% financing, but what about closing costs ? - Posted by Clint Wooley

Posted by Clint Wooley on August 21, 2003 at 21:54:47:

Hi Owenreg,
You’re on the right track…the best way to get a seller to pay closing costs is to simply ask. If you’ve already negotiated a price or if you feel the property warrants it, you might increase your offer by enough (maybe even more than the asking price) so that the seller can afford to pay your closing costs.

There are a couple of other issues, though, that you should address before you get to that point. First of all, there are quite a few 100% and even up to 115% loans available, but most (not all) require very good credit, and being able to qualify for the loan. The way to know the best avenue for you to accomplish your purposes is to consult with a lender prior to making an offer. That way, you are making your offer in confidence (especially if you’ve been through the credit approval process already) Having the knowledge of what you know you can borrow and under what circumstances can enable you to more effectively negotiate.

Re: 100% financing, but what about closing costs ? - Posted by Frank Notaro

Posted by Frank Notaro on August 24, 2003 at 19:34:11:

Where do you get a 100% mortgage. I always end up putting 10% down plus closing costs.