I'm working with a mortgage broker, he states the 100% financing must include a seller's concession and if the seller does not agree on it, we must come out of pocket for the closing cost. Is this true?????
What's included in the 100% financing. What are the guidelines? Is the closing cost included?
Thanks for your assistance.
2007-08-30 07:16:13 · 4 answers · asked by Nancy Rodriguez 2 in Business & Finance ➔ Renting & Real Estate
The 100% is onl the agreed sales price. It does not include the closing cost and prepaids such as insurance and taxes.
2007-08-30 07:24:30 · answer #1 · answered by golferwhoworks 7 · 0⤊ 0⤋
Yes, 100% financing only covers the purchase price. You still have to pay for closing cost. If you get a seller concession then the seller will pay closing cost if the seller does not agree then yes you would have to come out of pocket for the closing cost. But again it is ways around this but that depends on if your broker know's how to structure the deal.
2007-08-30 14:31:37 · answer #2 · answered by commercialresidentialfinancing 1 · 0⤊ 0⤋
Closing costs are NOT included!!
you are financing 100% of the contract price. If the seller can't agree to pay some or all of your fees, then you have to pay them.
While there were some loans that financed 103% of the price to roll in closing costs, I think most were subprime and they are probably gone.
The lender and realtor need to work together and structure the contract so the seller pays the fees.
Ex. Instead of offering $5K less than asking price.... offer full price with the seller paying $5K of closing costs.
2007-08-30 16:38:05 · answer #3 · answered by DallasLoanGuy 2 · 0⤊ 0⤋
why go thru a broker, they charge more than your local bank
and is trying to find you a subprime loan, which in the long
run rips you off on interest and you lose your house if you
become unemployed or ill.
2007-08-30 14:22:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋