Items Tagged with 'Closing cost'

ARTICLES

  • Fifth Third will give low-income borrowers $1,500 to cover mortgage closing costs

    New loan program can be combined with down payment assistance
    Aiming to boost homeownership for low-income families, Fifth Third Bank is rolling out a new mortgage lending program that will provide as much as $1,500 that certain borrowers can use to cover their closing costs. Fifth Third announced Monday that it is launching the “Fifth Third Community Mortgage,” which provides closing cost assistance to low-income borrowers or borrowers buying a home in a low-income community.
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  • Ask the Underwriter: Can the borrower’s cash to close be less than the FHA minimum required investment amount?

    There's a loophole
    Ask any mortgage professional and they will tell you if you use an FHA loan to buy a new home, you must make a Minimum Required Investment equal to 3.5% of the purchase price or appraised home value (whichever is less). Most of these "experts" will also tell you this means the minimum down payment and cash due from the borrower at closing must be equal to 3.5%, and they will insist your out-of-pocket cost cannot be any less. And this misconception is so widely believed that it caused a bit of panic in my office this week. Read on to find out about how a little loophole helps avoid this problem...
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  • Fannie Mae now allowing lenders to contribute to borrower closing costs

    Funds must be a gift and cannot be used toward down payment
    While it’s not quite the same as the down payment assistance that the government-sponsored enterprises used to allow, lenders now have a new way to help borrowers buy a home – closing cost assistance. Fannie Mae announced this week that it will now allow lenders to contribute to borrowers’ closing costs, as long as the money is a gift and is not used towards a borrower’s down payment. Click the headline to read more.
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  • FTC, Realtors warn homebuyers about mortgage closing cost phishing scam

    Hackers continuing to pose as agents or title companies
    A little over a year ago, the Federal Trade Commission and the National Association of Realtors issued a warning to people interested in buying a home. Scammers were posing as real estate agents, Realtors and title insurance companies to steal consumers’ closing costs. Well, that was last March, but it appears that scammers are still finding new victims to take advantage of.
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  • PrimeLending begins offering closing cost assistance nationwide

    Program available for low- and moderate-income homebuyers
    PrimeLending, a PlainsCapital company, will soon begin offering closing cost assistance for low- and moderate-income homebuyers nationwide. Under the program, qualified borrowers could be eligible to receive up to $1,500 or $2,000 in closing cost assistance, dependent on their income and the location of the property they want to buy.
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  • The potential cost of misunderstanding title insurance financing

    New York State real estate buyers spent an estimated $817 million on title insurance in 2015
    Title insurance is a topic rife with misunderstanding and myth. It is required on most real estate transactions and is generally purchased even when not strictly required, so understanding available lower-cost options can make a real financial difference.
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