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

import · August 21, 2003, 9:21pm

Posted by nigel(oh) on August 22, 2003 at 13:00:57:

n/t

import · August 21, 2003, 9:21pm

Posted by Owenreg on August 21, 2003 at 21:21:11:

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

import · August 23, 2003, 11:47am

Re: 100% Financing, but what about closing costs ? - Posted by ericb

Posted by ericb on August 23, 2003 at 11:47:19:

Are you purchasing the property as owner occupied or investment? What does your credit and income look like? There are a lot of variables.
Owner occupied 100% or even 107% purchase financing is available. Rates are a bit higher, but your closing costs are fully covered with no contribution by the seller.
There are 80/20 loans avail and there is always the FHA approach of 97%ltv with 3% seller paid closing costs and 3 or 4% seller contribution to a gift fund program to cover your down (as long as the property will appraise appropriately).
I recommend talking to a local mortgage broker who has a variety of options available.

import · August 22, 2003, 1:34pm

what the heck?! - Posted by yshNJ

Posted by yshNJ on August 22, 2003 at 13:34:12:

i didn’t post the above message. I’m not owen regard. But I did do the topic line. That is weird.

import · August 21, 2003, 9:39pm

Re: 100% Financing, but what about closing costs ? - Posted by Brent_IL

Posted by Brent_IL on August 21, 2003 at 21:39:38:

Sign a purchase contract for 110% of whatever you and the seller have agreed upon. One of the terms of the contract would require the seller to pay all closing costs, prorations, and transfer costs. Get a 100% loan. Deposit into escrow.

1 - The appraisal will have to meet the lender’s guidelines.

2 - Friends of friends are infamous for unreliability. Talk to the loan guy before you make your move.

import · August 22, 2003, 2:47pm

clarification - Posted by yshNJ

Posted by yshNJ on August 22, 2003 at 14:47:12:

It seems that one of my posts below links to your post owen. Sorry for the confusion.

import · August 22, 2003, 8:39am

Estimating closing costs in NY - Posted by Jim (NY)

Posted by Jim (NY) on August 22, 2003 at 08:39:24:

Would anyone happen to know what the approximate closing costs as a percentage of purchas price would be in NY? I’m a newbie, and I’m looking at my first deal. Thanks!

import · August 22, 2003, 2:15pm

Re: Estimating closing costs in NY - Posted by Juan

Posted by Juan on August 22, 2003 at 14:15:29:

I was trying to purchase a house recently in the New York area (Queens county) and the closing costs where estimated to be about 6% of the purchase price. I am also a newbie so anyone out there correct me if I am wrong. Thanks