Closing Costs Help

[Anonymous]

Yay, I got preapproved for a FHA loan at 4.875%, but I am waiting for the $7,500 tax credit for my  down payent.Also, I need about $10,000 for closing which I don't have. The home is worth $300,000 and I can get it for $170,000. This is a reo and the bank will not do an concession. My mother has$10,000 in a cd account, but she says she cannot borrow me the money because half of it belongs to her husband. Can someone help me figure out how I come up with the closing costs. Can't I just take out the $10,000in a personal loan? My mortgage payment will only be $922 P&I which is waycheaper than rent in NYC.

[700bound09]

have the seller of the reo property give you closings costs..

have you submitted an offer on the property? If not, have the seller give you closings costs when you submit your offer.

[GovtGal]

Have you tried asking the seller to cover closing costs?  Some motivated sellers are willing to do that.

[salsa34]

Any chance you have a retirement account you could borrow from? 

[Anonymous]

I believe the Op said the seller was not willing to do concessions.  Some banks just will not do it.

Also, in the listing you said you were waiting on the 7500 tax credit.  You do know that this can not be used for down payment.  It is a tax credit that is only valid AFTER you purchase a house.  If you filed for it last year but did not purhcase a house that was tax fraud and you are in for some serious fines/penalties.  I would refile ASAP to get it cleared up.  If someone has told you that the money for the credit would be given to your foe down payment or costs, they are absolutely wrong.  Sorry to be the bearer of bad news and I hope it all works out..

[Anonymous]

Also, generaly you can not borrow the down payment/closing funds except from retirment/401K.  In those cases you are in effect loaning yourself money....