There are two categories of closing costs:

Non-recurring and recurring (aka pre-paids) costs.


Non-recurring closing costs happen one time as part of the transaction.  These costs can vary depending on the area of the country but here are some examples of the typical costs you might see.

  • Appraisal
  • Credit report
  • Underwriting fee
  • Termite Report (Refinances)
  • Notary fee
  • Title Insurance
  • Flood determination
  • HOA processing fees
  • County Recording Fees

Recurring Closing Costs, or prepaids, refers to costs incurred as part of homeownership. Some examples would include


•Homeowner’s insurance premium

•Prepaid interest on the loan

•Property taxes due at closing

Property tax and insurance impounds

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Laura Borja- Home Loan expert- NMLS 199107

Only assets derived from acceptable sources are allowed for down payment and closing costs.

Down Payment

Minimum down payment required is based on credit the score

Credit score of 580 and above.: Minimum of 3.5% down payment

Credit scores between 500-579: Minimum 10% down payment

Closing costs

Real estate and mortgage transactions have fees associated with them, regardless of the type of financing involved.


The amounts charged will vary depending on the location of the property, the time of the year the loan closes and the fees charged by 3rd party providers.

Allowed Sources of Funds

Source Down
Buyer's own funds: checking, savings, retirement,investments and cash on hand.
Loans against financial assets such as other real estate, retirement and investment accounts and other depository accounts.
Proceeds from the sale of real estate and other personal property.
Gift funds: must be from a family member, employer, government agency or charitable organization. A gift letter must be signed by the donor and the transfer of the funds must be documented.
Seller Credit- Max 6%**
Lender Credit

**Interested party contriubutions include credits towards closing costs and other loan fees by the Seller, real estate agents, builders and developers. The combined total is limited to 6% of the sales price.

Non-Allowable Sources of Funds

  • Unsecured signature loans
  • Cash advances on credit cards
  • Borrowing against any non-real estate property such as vehicles, furniture, jewelry and household goods
  • Any and ALL funds derived from illegal sources

This overview is not all inclusive and does not include all guidelines or potential qualifying situations. Contact us or your lender for additional information that applies to your situation.

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Laura Borja  | Senior Mortgage Consultant | NMLS#199107

Cell: (619) 992-4061

27271 Las Ramblas ste 350  Mission Viejo CA 920691

This website is not authorized by the New York State Department of Financial Services to accept mortgage loan applications for properties located in New York. Intended for California Consumers Only.




Laura Borja- Home Loan expert- NMLS 199107
Laura Borja- Home Loan expert- NMLS 199107
Laura Borja- Home Loan expert- NMLS 199107