Financing closing costs

8bitmachinegun — Fri, 04 Dec 2020 21:25:15 GMT

I know generally speaking, the seller is limited to financing a certain percentage of closing costs depending on the loan. But what about non-seller financing? Credit cards, personal loans, loans from family/friends, etc.?

I know this is big no-no for a down payment, and given the nature of that money that makes sense. But I'm having a hard time getting a straight answer to whether non-seller financing of closing costs is limited to a certain percentage, or even allowed at all.

EDIT: And an additional query, can you use a IRA for closing costs instead of the down payment?

Re: Financing closing costs

NC_Mtg_Loaner — Sat, 05 Dec 2020 14:33:51 GMT

Banks don't typically like to see closing costs or down payments "financed" as it adds an additional layer of risk to the equation.

Using your IRA or loan proceeds from a retirement account are generally ok though--credit cards or various other unsecured loans, not so much.

topic Re: Financing closing costs in Mortgage Loans

Financing closing costs

Re: Financing closing costs