Financing in 08234>Question Details

Stormshadow, Home Buyer in 08234

what expense do you get back from doing a first time home buyers loan the closing costs or your down payment?

Asked by Stormshadow, 08234 Tue Nov 1, 2011

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If you are referring to a "first time homebuyers loan program" that helps with down payment or closing costs assistance - it will depend on what the program is covering. Some specify you have to put a minimum amount of money in, such as $500 or 1% of the sales price, before they will provide assistance, and then they will only provide a certain amount of assistance. So the amount of money you will "get back" will depend on what the program covers, how much you have to contribute, and what the total amount of down payment + closing costs are.

Like has been pointed out, the Egg Habor Township is in an eligible area for USDA Rural Housing Financing, which is 100% financing, and if the home appraises for more than the purchase price, you can use that difference to finance your closing costs too - therefore there wouldn't be a need for an additional first time homebuyer down payment assistance program.
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Stormshadow
Again all of the answered below are correct, and all answers will depend on where you are buying and what type of buyer you are, the only information i want to add is that with a first time home buyers loan you dont get any expenses back but you may be able to see those costs reduced, such as a lower down payment , regular loans may require a 10% down payment where your loan may only require a 3.5% down payment, Again all these things are going to differentiate as every buyers situation is not the same, Anymore questiong email me and i will be glad to assist you through the whole process. valentinorealty@gmail.com
0 votes Thank Flag Link Tue Nov 1, 2011
Stormshadow, both answers below are correct. Also, please keep in mind that if you're a first time buyer you may also qualify for an USDA loan which will allow you to come up with $0 toward your closing costs and your down payment. Your down payment and closing costs (concession) can be carried into the life of the loan, which can allow you to use your savings toward moving expenses, furniture etc. Now, please also note that there are out of pocket expenses which may not be allowed to be paid at settlement with the concession. These are for example- inspection costs, appraisal, first year home owner insurance; some of these are cash on delivery services. Please feel free to contact me and I would be than happy to go over this with you.
0 votes Thank Flag Link Tue Nov 1, 2011
Corey is right, you don't get anything back, however, I wonder if you are asking about rolling the closing costs into the loan? That can still be done. The contract has to be written such that there is a provision that the seller will pay XXX toward the buyer's closing costs. And you have to qualify for the higher loan amount. You still have to make your down payment. Check with your mortgage professional and your real estate agent or broker to be sure you qualify first of all, and to be sure you get the language just right.
0 votes Thank Flag Link Tue Nov 1, 2011
Stormshadow you don't get back any expense doing a firsty time home buyer loan. You're able to take a tax deduction of points paid at closing.
0 votes Thank Flag Link Tue Nov 1, 2011
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