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What can I do to get more (or better) quotes for my loan request ZR-TSPPQFH?

why am I criticised by your  site, for only requesting half of the cost of a house? Here I am being smart and paying 50% but you say it is hard for me to do?  I can find a house for 40K  , will pay 20K down.  THAT IS ALL I NEED. IS there something I am missing here?
Nora Earhart 231-838-7592
  • October 21 2013 - Garden City
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Answers (1)

Hi Nora,

For mortgages, lenders are capped at the amount a borrower can pay.  This amount is capped at 5% of the loan amount per RESPA.  So, for all expenses to acquire this mortgage (appraisal, underwriting, processing, title work, etc.), by law you would only be able to pay $1,000 (5%).  Average 3rd party costs are $2,500, so achieving this would be impossible.  If you are charged more than 5%, it is considered a form of predatory lending, and a lender could lose their license.  It is not that you are being "criticized", it is that lenders cannot meet regulatory requirements with loans of this size.  You may want to contact your bank or credit union and look at acquiring a personal loan for the remaining balance.

Apologize for inconvenience, but want you to know the rationale behind limited responses.

Best,

Bryan
  • October 21 2013
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