There is a rule and regulation about High Cost Loans. The percentage of the closing costs of the loans cannot exceed 5% and when you get into a low loan amount the settle costs exceed the 5%...hence committing a high cost loan.

An alternative might be to find a 2nd mortgage lender who could offer a home equity line that will stand in the first lien position. Or a Credit Union who would offer a 1st Mortgage product. They can usually get around some of the intangible taxes.

If you have further questions, please email bobl@communitymortgage.com.

Jodi Smith
Atlanta Real Estate Agent
Keller Williams Realty Consultants – Roswell, Georgia
678-763-6025
jodismith@kw.com
Tweet Me: http://twitter.com/JodiRSmith