This is one of the most common misconceptions in the mortgage industry. You may have heard a friend or family member mention they were able to roll their closing costs into their mortgage loan; however this is not entirely true.
What this really means is that they were able to secure either a seller credit, which is when the seller agrees to pay the costs because they sold the house at more than the market value, or lender credit, which is when a lender will pay the closing costs in exchange for a higher interest rate. See below:
To learn more about specific mortgage requirements, be sure to speak with an experience mortgage broker.
Blue Water Mortgage is licensed in New Hampshire, Maine, Massachusetts, Connecticut, Florida, and North Carolina.