Home Buying Info
home buying

When buying a house remember that the sum of all financing may not exceed 100% of the cost to acquire the property plus any normal prepaid expenses. The Department of Housing and Urban Development is aware that all of the borrowers prepaid expenses normally paid for in cash at closing are often paid by a the government agency provider of the secondary financing and included in the second loan. This may result in the sum of the first and second exceeding the 100% maximum loan-to-value by these costs. The sum of all financing may exceed the 100% by these costs only, when those funds were provided by a government agency provider. In no instances may this result in cash back to the borrower.