$0 Closing cost mortgage?

[Thiefofthieves]

I'm looking to purchase a new home in the $180-$200k range. My FICO score is a 742 based on 2 lender pulls this week and my DTI is good (both lenders said I could go up to $250k and be ok). My issue right now is coming up with money up front. I have about $6,000. That's it. Is it possible to find a mortgage that can make it work? Or is it realistically not enough money to close on a home?

[Revelate]

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@Thiefofthieves wrote:
I'm looking to purchase a new home in the $180-$200k range. My FICO score is a 742 based on 2 lender pulls this week and my DTI is good (both lenders said I could go up to $250k and be ok). My issue right now is coming up with money up front. I have about $6,000. That's it. Is it possible to find a mortgage that can make it work? Or is it realistically not enough money to close on a home?

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I know Cashcall Mortgage was pioneering no closing cost mortgages even a few years back and still offering them today; would expect they and likely other lenders can probably do what you're looking for at least on the closing cost side though I have no idea on their downpayment requirements.

Heh actually if I had your FICO score I might look into them myself glancing at their site.

[Thiefofthieves]

CashCall mortgage says the minimum loan amount is $300,000. :-(

[StartingOver10]

Work your closing costs into the purchase contract. If you are going for a conventional loan, the maximum amount that is allowed is 3% of the purchase price which should cover the majority of your costs. With a 5% down payment, you have enough to purchase, but just barely.

The other option is to have the lender bump up the rate a bit and have the lender pay your costs.

You can also go FHA with a minimum down payment of 3.5% and a maximum contribution allowed of 6% of your purchase contract.

Most lenders can bump the rate and pay your costs, just ask.

[Anonymous]

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@StartingOver10 wrote:

Work your closing costs into the purchase contract. If you are going for a conventional loan, the maximum amount that is allowed is 3% of the purchase price which should cover the majority of your costs. With a 5% down payment, you have enough to purchase, but just barely.

The other option is to have the lender bump up the rate a bit and have the lender pay your costs.

You can also go FHA with a minimum down payment of 3.5% and a maximum contribution allowed of 6% of your purchase contract.

Most lenders can bump the rate and pay your costs, just ask.

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I had absolutly no idea this was even an option. This brings a smile to my face.

[StartingOver10]

Yes, it's done all the time!

[wagsk1]

I am doing this also. I have the seller kicking in 8k towards closing and the lender giving me a 2k credit. House needs some updating from the 70`s so I need the cash to do a few things. This is a VA loan.

[Revelate]

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@StartingOver10 wrote:

Yes, it's done all the time!

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Oi thanks S10!  Went looking at various lenders for my own mortgage ideas and virtually all of them had some verbiage regarding "rolling closing costs into the loan."

[ezdriver]

Any loan officer worth his "salt' would have advised their application of the various options to pay for closing costs. That is mortgage 101. A borrower should not have to educate their loan officer.

[Anonymous]

Are there any known restrictions on an FHA loan in doing this?

Are these "closing costs" to include or exclude the prepaids that are also do at closing?