All Forum Posts by: Nathan R. Cowger
Nathan R. Cowger has started 7 posts and replied 23 times.
Post: Loans not legal because of the ratio of closing costs to loan
- Investor
- Monument, CO
- Posts 26
- Votes 11
Yes, that is an option. I just want to understand what is really going on here so I don't run into it again on another property. Does anyone understand what my mortgage company is talking about that can shed some light on this?
Post: Loans not legal because of the ratio of closing costs to loan
- Investor
- Monument, CO
- Posts 26
- Votes 11
OK, this wasn't even "in" the loan. We were told we couldn't even pay it out of pocket, up front if it was above 5%. They said the seller would have to come up with money. It really doesn't make sense to me.
Post: Loans not legal because of the ratio of closing costs to loan
- Investor
- Monument, CO
- Posts 26
- Votes 11
Trying to close a deal on an investment property that is $127k. The market is somewhat competitive so we are paying all closings costs as buyer. We are working with a mortgage company (conventional loan) that is telling us we cannot pay all the closings costs on a small loan (around $100k) because it's not allowed in CO. Closings costs on investments cannot exceed 5% of the loan amount. They want us to go back and amend the deal to ask for the seller to pay $2500 so we can make the deal. We have excellent credit (my father and I) and we both have the money. We qualify in every other way. Has anyone heard of this? I'm told they run into this all the time on loans that are less than $100k.