Buying Your Katy-Cinco-Ranch-Richmond Area Home For The Best Price!
Katy-Cinco-Ranch-Richmond Area Home
For The Best
Chapter 11 How To Find Down Payment And Closing Money Part 1
The No Down Payment Option Is Gone
You need some money for earnest money, inspections, appraisals up front and you may need some money for down payment and closing costs. There are ways around a lot of the expense if you have even moderately good credit. If you want a house and do not have bad credit there is no reason that you should not own a house.
Seller can pay for 3% to 6% more of your closing costs. This is legal and must be cleared with the lender because certain loans have certain limits. It depends upon individual loan programs. It is best right now to ask your lender.
Lenders seem to be fascinated with the FICO score. If you have good credit, then they are more lienient in other ways. If you have good credit you do not have to have a lot of money at closing.
Not all of these methods apply to you. Hopefully some of them will be thought provoking if you are looking for money.
Ask the Seller to Help
Motivated sellers often find it advantageous to offer special incentives to buyers. Your real estate agent can negotiate on your behalf when you make an offer on a home to have the seller pay for all or a portion of your closing costs. This must be coordinated with your lender and must be considered when deciding on your offer amount.
Get a Tax Free Gift
Do you know anyone who can give you a gift? Any taxpayer is permitted to give up to $10,000 per year to another person without having to pay a gift tax. A gift is documented with a letter stating that no repayment is required. Children are permitted to receive up to $10,000 from each parent (for a total of $20,000 in a one year period without having to pay taxes. A couple, then, could get gifts up to $40,000 from four parents, all income tax free. Most lenders require that at least a portion of the down payment to be your own money in addition to the gift. Before doing any of this check with your lender!
Use a Tax Refund
Are you anticipating an income tax refund? If so, you can use it as a part of your down payment. You can also raid you other resources: coins in a coffee can– the Savings Bonds your grandma gave you, and so on.
Next Chapter: How To Find Down Payment And Closing Money, Continued.