Closing Costs (grants?)?

Question

Can anyone please give me some information on where I should look, and what type of grants I should look for for help with the closing cost of a house? Loans are fine too, but we already are taking one loan out for this... We still need help w/ the closing cost *sigh*
we are a first time homebuyer, if that matters. Thank you in advance for any help =)

thanks 4 all the comments... Just a random note i should have included; i'm in NYC
thanks again!

Answer 1

Most grants as they are called are merely paper plays called a grant. The seller must agree to contribute towards closing costs and those sums are then paid by (dream home etc) as a grant. The tough issue to navigate is whether a lender will allow recurring and / or non recurring, 3% or 6% and will the seller pay them and will the appraisal allow for the price to include them. Now your likely really confused so heres a few example's.
A home is listed for 118K
Your agent states you can add closing costs to the offer and make it a wash.
You offer 125K with the seller paying up to 6% buyers closing costs.
A grant will be made for 7K to cover your closing costs, or, without a grant, the seller directly pays the 7K

Next comes the Appraiser
His target number for the bank is purchase price or appraisal whichever is lower.

He appraises the home at 122K
What happens next ?

A grant wont help here as the margin remaining is not an actual closing cost.

The up to 6% seller agreed contributions arent as much anymore but he can agree to ammend the sales price to 122K and still contribute in exchange for the price reduction 4K towards closing costs.

Your lender allowed closing costs are less so you close and end up with the house.

With a very good negotiator as an agent you can offer the 118K and get 3% closing costs seller paid. At 122K you have in affect financed into the deal your closing costs but was able to close.

Other grants such as the FHA First time homebuyer program are really just allowing you to finance them and they insure the lender risk. There really arent sources of free money like some scam companies like National Grants would have people beleive. There are some programs in cities and counties that will assist in situations like yours but they too have their rules of attachment. Some will be forgiven after 5 years, look in your local area for a program that will assist. There are some that require the house to be in a target area or the buyers to fit a specific profile. The easiest way in my 25 years of selling homes has been to make a respectable offer and ask the seller to contribute 3% towards buyers allowable closing costs. The other way in some programs is to have the buyers relatives do a gift letter. I have also used pledged asset collatteral loan's from World Savings and Merril Lynch mortgage for the same purpose.

Answer 2

Closing Cost Grants

Answer 3

I am a Realtor who works with many First Time Home Buyers (FTHB). There are actually numerous programs out there design for First Timers. Since I don't know what state you live in I can't give you an exact answer but may be able to help. I work and live in Florida and the company I like to use is www.floridahousing.org. They have programs where FTHB can have access to a low fixed rate mortgage and a second non-amortizing loan (that means you do not have to pay back until you sale, re-fi, or cease to occupy your home) for down payment and closing cost. You can check with them and ask them to tell you how to get in touch with someone in your state. (It seems to work out every state has a program with housing financial corp. ex: www. yourstatehousing.org). You'll have to take a credit course though.
2) Ask your lender-many lenders have something for you.
3) Check with the City's housing authority and/or community developments-they may even have a SHIP program for you as well.
4) Have the seller pay your closing costs. Its a buyer's market so offer near the asking price with the seller to pay closing cost.
FYI... a couple years ago there were many programs that offered closing cost/down payment grants but do to recent events grants a hard to find.
Hope this help

Answer 4

Maybe you should buy a less expensive house so you'd have the money for the closing costs.

Answer 5

TRY A CREDIT UNION RATHER THAN A BANK. ALSO TRY FANNIE MAY FOUNDATION.

Answer 6

when you do find out, let me know too, please.