Talk to another loan officer.
There may be a solution, but this really isn't enough info.

FHA = 3.5% down. And seller can pay most or all of closing costs in many situations.

BTW, I am also and Experienced Realtor, with over 30 transactions under my belt in less than a year and half, I have already experienced many different situations and writing in closing costs is nothing hard to negotiate at all. The mass majority of my deals the seller has ended up paying my buyers closing cost.

Also one thing i have not seen anyone else mention is the Down Payment Assistance you can get if you qualify for the Tax Credit

have a good weekend,
RJ

Kathy in McKinney,

Can you give me a little more info? If you are fully approved, not "pre-qualified" the bank would have had to have seen your income documentation to approve you, and if so, then they deemed you had enough down. Depending on which loan program you go, there are certain ways an experienced Realtor as myself, can write the contract to help you to come to the table with the least amount out of pocket, but you will have to put down some money. It sounds like you might have been approved with 5% down on a conventional, but if you go FHA, you can put down as little as 3%. Also, if you close before December 1st, there is an up to $8,000.00 Tax Credit you might qualify for if you have not owned a home in 3 years or ever - and if your income is less than $100,000. I would be happy to assist your Collin County Real Estate needs!

Nicole Arenas, Realtor
William Davis Realty
214-991-9507

Get yourself an experienced Realtor, They can explain all the options to you. When I am a buyer's agent, I try to get the Seller to pay closing cost. That can be pretty steep. If you need the seller to help with closing costs, then you cannot purchase a short sale. If you are not working with a Realtor, feel free to call (972) 757-4527 my email is Barbara@Powerteamtexas.com. I originally started my Real Estate Career in New york in 1984
We have a great power Page

Yes, Kathy, your lender can provide you with a good faith estimate. It won't be right on the money since, until you pick a property, taxes and insurance cannot be determined, but they can be estimated fairly closely. Sit down with your lender and talk it out. Ask them why an FHA loan with 3.5% down isn't the right choice for you. Ask them, if you're a first time homebuyer, about getting the 8K tax credit applied to the money that you need at closing. If you're not getting the answers that you need check with an experienced agent who will tell you about some great local lenders that they know of.

Good luck!

Your loan consultant should have factored all of that in for you. Ask them for a good faith estimate on what it's going to take to close.

I would suggest trying an outside broker and see if you cannot get approved FHA for a 3.5% down. If you can there is also plans that can monetize the $8000 tax credit to be used towards closing costs and down payment. Closing costs can be paid for by seller, however the downpayment must come from your cash or the DPA. I would act really fast as the DPA system takes at least 45 days and to be closed by november 31st and get the tax credit you would need to have a contract working no later than the first week of November.

If you would like the number of a good lender i have done 3 of the DPA loans with mine and he understands the process. Also if you have not chosen A realtor I would be happy to send you a search and show you all the properties in the area. I will be listing a home on Suzanne tomorrow in Allen and would love the opportunity to work with you as a buyer.

As an added bonus my lack of a large name broker allows me to rebate 20% of my commission back to you at close.

One other option is to have a friend or family gift you the funds prior to closing.

Please dont hesitate to call with questions I am up til at least midnight tonight if not later.

Thanks
RJ
214-682-0598