puttig down payment into loan balance?

Unfortunately down payment can't be financed into the loan. Mortgage programs that require a down payment, i.e. FHA and conventional, need the buyer to have a 'minimum investment' in the property of 3.5% to 5% of the sales price. If you don't have it then having a family member gift you funds is acceptable. There are also down payment assistance programs available for those who qualify for them. I'm with a direct lender here in NM and would be happy to discuss these and other options with you... no charge or obligation of course. Charlie Sparks, MLO# 195031, 505-350-3745 or csparks@pcmloam.com

Your aunt was likely refinancing and used some of the equity in her home to pay the closing costs, known as rolling them into the balance. If the down payment was put into the loan balance on a purchase, it would not be a down payment. There are loans with very limited down payment options, 3.5% for FHA, 0% for VA and USDA and 5% for conforming. You can also look into down payment assistance programs in your area. Just google "New Mexico Down Payment Assistance" and you should be able to find some options.

A down payment can not be rolled in to the loan. It can be a gift, it can come from a down payment assistance program, but never financed in. You can do a sellers concession which you can finance, and use your closing cost funds as your down payment if that works.

No, a down payment on a purchase cannot be rolled into the loan. A refinance of an existing mortgage allows the borrower to roll the costs into the loan, if there is sufficient equity in the property. The minimum down payment varies from 0% to 5% depending on the type of loan you are seeking. There are also other options available to assist in meeting the minimum down payment requirement. My name is Gina Bell, I am a local mortgage broker in Albuquerque and a Certified Residential Mortgage Specialist (CRMS) and would be happy to discuss your options and answer any questions you might have. Feel free to give me a call at 505-323-0724 or via email at gina@accessfundinginc.com. NMLS #222731