Home Buying in Tampa>Question Details

cherrie.duse…, Renter in Tampa, FL

When you only have example: $6000 to put down on a house how can you tie in the closing costs without anymore money out of pocket.?

Asked by cherrie.dusendang, Tampa, FL Sat Aug 3, 2013

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13
The way you get assistance with closing cost is with seller contribution. While with FHA you only need 3.5% down, it's an expensive loan to close for two reasons. There is an upfront mortgage insurance premium of 1.75% and addition to the monthly mortgage insurance that you pay as part of your monthly payment. Conventional loans don't carry the upfront 1.75% MIP and we have a program that only requires 3% down, the monthly MI is less than 1/2 of what you would pay for with FHA AND the monthly mortgage insurance will cancel when your home reaches 80% of it's loan to value. FHA just changed their guidelines, the monthly MI stays on for the life of the loan, this can be a significant payment amount each month. If you find a home that is eligible for the Homepath loan, these are Fannie Mae foreclosures that only require 3% down, there is no MI, but the rate tends to be higher than standard conventional. There is no appraisal requirement as well on the Homepath. USDA is a great loan, but it will depend on geographical area and income for this loan.

I am a direct lender and offer all of the above loans. Please feel free to contact me if you have any further questions.

Maureen Helm
VanDyk Mortgage
mhelm550@vandykmortgage.com
727.421.1067
1 vote Thank Flag Link Sat Aug 3, 2013
I am a direct lender as well as a Realtor. I can definitely give you some options to save a lot of money on closing costs!

Jim Steele
Re/Max Marketing Specialists
727-656-7694
jimsteele@remax.net
0 votes Thank Flag Link Tue Aug 27, 2013
You may have luck buying a foreclosure. Often if the seller is paying your closing costs and the property subsequently doesn't appraise, the seller may lower the selling price to the appraised value.
0 votes Thank Flag Link Wed Aug 21, 2013
Cherrie, the amount required as a down payment is determined by the type of loan you are getting. The amount the seller can contribute is determined by the type of loan and if you are purchasing it owner occupant or as an investment. Under most circumstances, the seller cannot contribute toward the downpayment. Some loan programs are designed for people with little or no down payment. Depending on your loan, the seller can contribute up to 6% closings costs and possible pay off a certain amount of your debt. You need to talk with a qualified lender in the Tampa area. You'll find one on Trulia or feel free to contact me and I'll connect you with someone.

good luck
0 votes Thank Flag Link Mon Aug 5, 2013
Cherrie Dusendang, buyers have options:

1.) downpayment assistance
2.) ask the seller for up to 3% towards closing costs (allowable percentage depends on type of loan)
3.) improve your income
4.) select a lower priced home
5.) a new home builder might have incentives that provide assistance.

Today's real estate market is very very fast. Some zip codes and communities are so fast, greased lightning seems slow. Asking for seller incentives in a fast market is a tough position when competing against cash buyers. Work with an experience real estate agent and mortgage broker to assist you.

The interest rate jump from 3.5 to 4.75% has pushed many first time home buyers out of the market. Snowbirds will be returning in September and with them more cash buyers. Best to figure out your options quickly.

Best regards,

Lynn Brock
Brock Realty Inc.
941.313.1234
http://www.brockrealty-inc.com
0 votes Thank Flag Link Mon Aug 5, 2013
Ask the seller to pay the closing costs up to 6%and offer over ask to accommodate your request.

Good Luck,

VP
0 votes Thank Flag Link Mon Aug 5, 2013
We can provide you with an Pre-Approval Letter and have your loan completely processed in 10 business days or less, pending an appraisal and home inspection. Give me a call when you get the chance and I'll explain to you the easiest way to save on closing costs.

Antonio Barnett
Senior Loan Officer
Cell: 614.806.1659
Antonio.Barnett@MovementMortgage.com
http://www.movementmortgage.com
2701 N Rocky Point Dr, Tampa, FL 33607
NMLS# 287888
0 votes Thank Flag Link Mon Aug 5, 2013
To get pre-Qualified at no cost please give me a call. (727) 365-3133

Bridgeview Bank, http://www.bridgeviewbank.com
Member FDIC
0 votes Thank Flag Link Sun Aug 4, 2013
Hi Cherrie Dusendang,

The easiest way to have all your cash go towards the down payment is to ask the seller to pay for closing costs and prepaids up to 6% of the purchase price. This would be done on the purchase agreement offer.

Thank you,

Matt Tarka
Principal Broker
Serving All of Florida
888-246-9060 Toll Free
954-605-2450 Direct
954-343-8098 Fax
mtarka@clearmortgagelending.com

Clear Mortgage Lending, Inc.
5200 North Federal Hwy
Suite 2
Fort Lauderdale, FL 33308
0 votes Thank Flag Link Sun Aug 4, 2013
In our area we call it a sellers concession(up to 4-6% of the price of the home depending on the loan). Get yourself a good agent versed in this procedure. Allan
0 votes Thank Flag Link Sat Aug 3, 2013
Hi Cherrie,

Also you can pay a higher interest rate on your mortgage and your "lender" can give you a credit for your closing costs. In this "seller's" market it is difficult to compete with other offers if you need the Seller to pay for your closing costs.

We also have State Bond money that may be able to give you up to $7,500 to buy a house, check here to input your household size and income to see if you qualify:

http://apps.floridahousing.org/StandAlone/FTHBWizard/FTHBWiz…

You MUST work with an APPROVED lender to get the Bond money and I can
highly recommend Gina Harris with Iberia Bank:

http://gharris-iberiabank2lo.mortgagewebcenter.com/Default.a…

Gina Harris
NMLS # 419423
Mortgage Specialist

3550 Buschwood Park Dr., Suite 295
Tampa, FL 33618

Office: 813-933-6611 Ext 204
Fax: 800-868-0337
Cell: 813-244-5685

Hope this helps!

All the best,
Alma Kee
http://www.SoldOnTampa.com
813.244.9898
0 votes Thank Flag Link Sat Aug 3, 2013
Maureen Helm's answer is 100% correct. When the contract is negotiated, you (or your Realtor) can increase the Purchase Price of the home so the Sellers contribution toward your Closing Costs are deducted at Closing.

For instance, if the asking price of the home is $100,000 and you want the Seller to pay your Closing Costs, you could offer to pay $105,000 for the home with the Seller contributing of $5,000 towards your Closing Costs. In this scenario, you won't be required to come 'out of pocket' for the Closing Costs and the Seller receives the $100,000 Purchase Price (after the Closing Costs are deducted at Closing).

HOWEVER, the Property must appraise for at least $105,000 in order for this to work. Unless you are purchasing a HomePath/Fannie Mae property and using their HomePath financing, when an appraisal is not required.

Hope this helps and best of success with your home search.
0 votes Thank Flag Link Sat Aug 3, 2013
You need to find a Realtor in your area (you can search here) and have them assist you with how to structure an offer on a home.. If you qualify for a FHA loan you only need 3.5% down, you can ask the seller to pay some of your closing costs but do get assistance from an agent who can help you find a lender as well. Good luck to you.
0 votes Thank Flag Link Sat Aug 3, 2013
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