Where to Get Help With Closing Costs

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.

Read more here.