BBVA Compass has announced it will now offer additional closing cost assistance for low-to-moderate income (LMI) borrowers that qualify for FHA or VA home loans. According to the Houston-based bank,
Qualifying borrowers can receive a total of up to $3,500 in assistance from BBVA Compass toward closing costs and other assistance for FHA loans and up to $2,500 for VA loans. According to Mortgage.
· Closing costs are a fee to cover various items charged by the lender, such as credit reports and loan origination fees. Average closing costs on an FHA mortgage are between 2-5%. Average closing costs on an FHA mortgage are between 2-5%.
FHA streamline refinance applicants have the power to lower their FHA closing costs by negotiating the lender pay them. FHA Streamline Refinance Closing Costs In addition to the fees listed below, borrowers are also required to prepay some expenses like taxes and homeowners insurance.
FHA loans have a minium down payment requirement as low as 3.5%. This amount excludes any closing costs, as closing cost payments may not be counted as part of the downpayment: Closing costs (non-recurring closing costs, pre-paid expenses, and discount points) may not be used to help meet the borrower’s minimum required investment.
If you should suddenly sell your home after a year, your actual cost for the Traditional finance method would include the $3968 in interest, plus an additional $2000 in closing costs for a total of $5968, while the other choices would have cost $4047 and $4467 respectively, so.
Borrowers who want a loan backed by the Federal Housing Administration or the Department of Veterans Affairs may qualify to receive as much as $3,500 in closing cost assistance from BBVA Compass,