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Does fannie mae allow lender credit to pay for closing costs?

by 5stargirl663 from Fort Worth, Texas. Apr 8th 2015 Reply


Gilbert Barteau (gbarteau)
#106 ranked lender in Texas - 41 contributions

Absolutely, you can use a lender credit to pay closing costs with conventional loans. Call me if you would like more detail. 214-360-9991

Apr 8th 2015
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Chris Samples (csamples)
#146 ranked lender in Texas - 82 contributions

Yes!

Apr 8th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,045 contributions

Yes.. it's done by selecting a higher than par rate and the added revenue generated by the higher rate is given back to you in the form of a "Lender Credit".. it's done all the time and is allowed on all conforming loan products. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Apr 8th 2015
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Yes the Lender can pay give you a lender credit to pay closing costs.

Apr 8th 2015
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Sure, closing costs and/or prepaids and escrows. That does usually mean a somewhat higher interest rate for you.

Apr 8th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,109 contributions

Yes and it's a normal practice too. Usually, for every .125% you raise your interest rate you will receive a higher credit to go towards your closing costs. The amount will depend on that days pricing and is a percentage of your loan amount. Talk with a local lender, share your info and have them present you with all of your options so you can pick the one that is right for you. Best wishes, Sean

Apr 8th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,568 contributions

Yes... that is exactly how every lender can offer a "low cost" or no closing cost loan. Of course nothing is free.. to get the lender credit of closing costs, you do so by accepting a higher interest rate.

Apr 9th 2015
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