Question:

I can’t pay settlement or closing fee - how to avoid it?

Answer:

Cash restricted borrowers should ask for seller's settlement or closing fee contribution. Also, there is a variety of mortgage loan programs that offer down payment and closing costs assistance to homeowners.

Seller's assistance with settlement and closing fees is acceptable with many lending programs. You should search your state's down payment and settlement assistance programs. Every state will have one and chances are good you will qualify if your income is moderate to low.

HUD approved homebuyer down payment and settlement fees assistance authorities in California are the California Housing Finance Authority (CalHFA), State of California Housing and Community Development, etc.

There are also a lot of private down payment and closing costs assistance programs. Just run a specific online search for your area and you will immediately find one. AmeriDream, Nehemiah, HART and Partners in Charity are only some of the FHA approved down payment and settlement costs assistance programs, available to moderate income households.

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