We will help you get into your dream home because we offer a full array of mortgage products to fit your needs. This section is here to help you understand our contribution to your closing costs or also called lender credits. We provide lender credits on all loan types. Each transaction is unique in how much lender credits are needed and your loan agent will discuss the options with you once we have more details (purchase price, property address, etc).
Closing cost assistance is available from us on all loan types including FHA, Conventional, VA, and Non-Conventional mortgages.
There is no minimum credit score needed in order to obtain closing cost credit from us. It does help to have a higher score but as long as you qualify for that particular mortgage, credits are available. There are a number of things that factor into how much credit will be available to you. Things like purchase price, loan size, loan program, and credit scores are a few of the factors.
There are three credit bureaus that are considered when buying a home. The three credit bureaus are Equifax, Experian, and TransUnion. Each of these bureaus will give their own credit score (risk rating) for you. Sometimes, the credit bureaus will generate the same score only by coincidence, but most of the time you will see three different scores. The highest credit score given by any of the three bureaus is disregarded, the lowest credit score is then disregarded, and you are left with your middle credit score. The middle credit score is what is utilized to determine your eligibility and several other factors while obtaining a home loan. The property types allowed to obtain closing cost credit are the same as all other programs – they are single family homes, townhomes, villas, duplex (2 units), triplex (3 units), quadplex (4 units), and condos. You are able to live in one of the multi unit homes (duplex, triplex, or quadplex) and have the rental income to be received on the other units count towards your income to help qualify. Income also needs to be verified while obtaining a mortgage. If you are self-employed, it is possible that we will review only your most recent tax year personal and business (if applicable) tax returns. If you are a wage-earner, someone that obtains a W2 at the end of the year, we will review your previous two year W2 forms along with a current paystub. Don’t worry – if your previous income is significantly lower than your current income, we can use your higher income just as long as it is justified (increase in pay or a pay raise, promotion, working overtime hours, etc.). A full two year work history is not required as long as we can document what you were doing for the past two years (full time student, etc.). If you are retired, we would just need proof of your retirement income (Social Security, pension, etc.). We will also need to verify assets (bank statements) in order to obtain a conventional loan. Again, don’t worry – your funds to close can come as a gift just as long as it comes from an acceptable source (ie no cash money, unverifiable cash, etc.). Gift funds have to be verified but they are allowed.