Author: U.S. News
Closing cost assistance can take the sting out of coming up with the cash needed to close on your mortgage. There are a variety of programs that provide help with closing costs, but you’ll usually need to meet certain requirements to qualify.
Don’t assume you won’t be eligible – there are programs available to people with incomes up to $160,000, for example. Here’s everything you need to know.
How Does Closing Cost Assistance Work?
Closing cost assistance comes in several different forms: grants, forgivable loans, low- or no-interest loans, and deferred loans. Grants and forgivable loans do not need to be paid back as long as you meet the program requirements. Low- and no-interest loans and deferred-payment loans do need to be paid back.
Closing costs often run about 2% to 5% of the home’s purchase price and include:
- Appraisal fees.
- Origination fees.
- Attorney fees.
- Closing fees.
- Document fees.
- Title search and insurance fee.
- Inspection fees.
- Deed recording fees.
- Escrow deposits.
