Covering high closing cost (ed?) - Posted by Ken (MD)

Posted by Brandon (FL) on February 10, 2002 at 15:40:05:

I’ve ran into this problem. Good reason why I’m looking to do rehabs. Best I can find in my area is lenders with seller assist programs. Usually covers 6% of loan amount. Just have the seller raise the price of the house equal to the closing costs.

Covering high closing cost (ed?) - Posted by Ken (MD)

Posted by Ken (MD) on February 10, 2002 at 14:53:14:

Hi, all. We live in a state with high closing costs (esp. transfer taxes/fees). Deals which would seem to make sense in SFR lose their attractiveness when closing costs are factored in.

For example, five houses for sale by the same person, wants to get out with only the mortgage covered, has no money to pay closing costs that we could give a second note on.

Closing on an $80K house run $5,700. If its a foreclosure, HUD, or VA, you rapidly go through any savings/credit you have.

What am I missing here? I don’t think hard money lenders are the way to go, since I understand they look for 60-65% LTV.