Ok, this is a bit technical BUT ABSOLUTELY CRUCIAL TO KNOW when you have FHA financing and are eligible to grants in addition to credits from your seller (closing cost, prepaids....)

If you finance with 3.5% down and you get too much money from outside in addition (credits, grants) it might ruin your closing, even last minute, if there is a seller's credit the lender sees too late. If you are not contributing the full 3.5% yourself anymore the bank might pull the plug on your FHA financing.

So as nice as it is to get a huge closing cost contribution it cannot exceed a specific to your transaction amount. Ask your broker and/or bank about this amount and make totally sure that this is under surveillance. I just had a 3 day delay and nearly last minute tank because of $600 too much in credits and the buyer's broker was in no control whatsoever.

 

 

Annette Sievert, Broker

Coldwell Banker Valley Brokers

541 207 5551

asievert@valleybrokers.com

www.homesincorvallisoregon.com

www.valleybrokers.com/asievert

 

 

 
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4 Comments on Too many credits may ruin your closing

MAY
06
2012
337,430 Points 13 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Annette ~ Interesting, thanks for sharing.
6:53pm • #1
153,109 Points 12 Featured Posts Outside Blog

Welcome, hope it helps...
6:55pm • #2
177,110 Points Outside Blog

Valuable information.

STrange how in this world of depressed real estate, low interest rates, and depressed prices, the details of the mortgage are still a hurdle to surpass.
8:34pm • #3
MAY
07
2012
153,109 Points 12 Featured Posts Outside Blog

Thanks Erv.
7:27am • #4


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Annette Sievert - Corvallis, Oregon

Corvallis, OR

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CB Valley Broker

Address: 1109 NW 9th st, Corvallis, OR , 97330

Office Phone: (541) 207-5551

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