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Paying for Closing Costs

Colleen Kulikowski April 25, 2016


Down Payment and Paying for Closing Costs

For many prospective home buyers, one of the biggest barriers to home ownership is having the funds for the down payment and closing costs. Buyers might consider these options for raising these funds:

  • Sell or borrow against an asset. Selling an asset, such as your car, will increase the amount of money you have available. Borrowing against an asset, such as your 401(k) or insurance policy, is also acceptable as long as you qualify for the additional debt.
  • Use gift funds. You may receive funds from a family member for your down payment. You will be required, however, to complete documentation that proves the money is a gift and not a loan.
  • Choose a low-down-payment program. Choose from the many low-down-payment programs available today, including FHA programs and, for veterans, VA programs. Among the low-down-payment options available today are those that include secondary financing – processed, approved and closed simultaneously with the first mortgage.
  • Obtain a low- or zero-point loan. This will reduce the amount of your closing costs substantially. You may be able to exchange points or closing costs for a slightly higher rate.
  • Ask for seller concessions. In some cases, sellers may pay for all or part of your non-recurring closing costs or carry back financing.
  • Consider non-traditional loan programs. You may be able to exchange points or closing costs for a slightly higher rate.
  • Obtain down-payment and closing-cost assistance. Today there is a wide range of programs that feature lower down payments and closing-cost assistance, including city, county and state programs.

Ask your mortgage loan officer about the different loan programs he/she has available to enable you to take advantage of these strategies. Your loan officer should also be able to help you decide which best meets your needs.


What about one of these homes for sale?

 All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.

For more information call Colleen Kulikowski

(716) 650-0051


Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call us at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home.

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