I Need Closing Cost Financing
I'm buying a nice home in Baltimore City, I have a mortgage financing through IndyMac, but I need another $12K to close. I can pay it back as soon as I close and can get a home equity loan -- the mortgage is $62.5K but the appraised value is $80K. My credit score is 608, I make $102K/year, and I'm willing to pay 2% month (24%/year) to any lender. I can't get a second mortgage only for this low an amount and I don't want to redo my financing. Anyone interested?
Hi there. I have a couple thoughts that may or may not be relevant to you. First, $12k in closing costs sounds high to me, especially on a $62.5k mortgage.
I needed $3k to cover the closing costs on buying my house for $164k. I didn't have the $3k to fork over...my mortgage broker and i decided to add the closing costs to the total mortgage amount, to equal $167k. That's what I did.
Good luck whatever you decide to do!
if u make that much money and assuming that you don't have bad credit you should be able to get a personal (unsecured loan). Better yet, increase your credit limit with your credit card and get a cash advance. The interest will be lower than the 24% that you propose to pay. I've tapped $60K in credit cards once to purchase a property when I was in a cash crunch.
Thanks for the replies. My credit cards are maxed out and I can't get a limit increase (probably b/c they're maxed out). 608 is considered sub-prime (as is anything under 620, I'm told).
The sales price is $69,500, plus $1453 in various settlement charges, plus $888 in city tax, plus $3775 in lender's items (inc. $995 for LOF and $1875 for points). That adds up to $75,615 (the final HUD-1 is evidently a little lower), or $6100 in costs other than the $6000 outstanding on the purchase price. My bottom line cash to close is JUST under $12000.
Add it to the cost of the property. I don't see the problem. Here in Florida it's done all the time under much worse circumstances.
A lot of lenders costs aren't necessary and are profit centers for them. Be careful.
I tried getting the lender to finance the LOF; no dice. As for the points, a no points loan would increase my rate to 9.75%, which would hike my payments from $425 to $550 or so -- costing me a minimum of $2400 for essentially an $1800 loan over the two years I'm stuck with this deal before I can refinance. (Plus the deal has to be refunded, which means a five-day delay and an automatic penalty to HUD. Besides, I have a fixed 7.25% 30-yr loan; if gas keeps going up and this ongoing war fuels inflation, that rate might be untouchable in two years.) And HUD limits closing cost help to 2%, which I'm already at. The agent was amenable to taking his fee off the settlement sheet, and I might take him up on that; that defers $2475.
I don't know how much more creative I can get in structuring the deal, given I'm working with HUD. (I got pre-approval on another house for 100% financing, but the closing costs on a $60K home would have been $7700. Broker fees alone were $3-4K.) So I think I'm limited to looking for funding options that fit my situation. Any ideas?
I am a broker and the fees are crazy. I agree with Tara that $12K in closing costs is very high on a $69,500 loan. I understand the lenders fees, title, taxes and insurance. Those are a given, but $1875 in points on a $69,500 loan??? that is crazy!!!! That's 2.75 points. Try to find a different lender/broker to do the deal if possible.
If these are the types of fees brokers are getting in Baltimore I need to pack my bags!!!
I am with all the others here in that 12k closing is outrageous on a 69K house!
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Thanks