What Exactly Are Closing Cost?

The Federal Reserve Board refers to them as “Settlement Fees.” They are, in fact the fees you pay to the various agencies and service providers who work to get the title of the home transferred into your name.

Using 401K Funds for Downpayment on FHA

With FHA financing, you can use 401K funds in the form of a loan or a withdrawal for required funds to close. We also use them quite often to simply document reserves with no intent to withdraw the funds. It can sometimes make a difference if your debt-to-income ratio is a little higher than the guidelines

Calculating Downpayment on FHA

For many years we calculated FHA downpayment by way of Acquisiton Cost.  Now… that’s “out the window.”  With the new “revisions” we calculated a “straight” 3.5% as reflected in the Mortgagee Letter below:
·        Closing costs:  Closing costs may not be used to help meet the minimum 3.5% downpayment requirement. Closing costs are not considered in [...]