CLOSING COSTS: FREE - HUNTINGTON BANK --- IS IT TRUSTWORTHY?

[Nick Klomstad]

Hi All,

In the process of closing on my first MFH and up to this point planned on using a Freddie Mac Home Possible 5% DP which locked at 4.25% 30 yr Fixed.

I was approached by a mortgage broker about a program through Huntington Bank where they cover the closing costs for the buyer. For me this would be north of $6k. I would still be on the hook for the remaining attorney's fees, Chicago Transfer Stamps, and other miscellaneous expenses. Additionally, the rate was better: sub 4%.

I was able to dig up a reference to this program from 2015 which is a bit dated and that concerns me. There is also a reference to Huntington in one of the BP threads about 8 months back whereby the buyer felt bait-and-switched when it came to close on the property.

I don't want to jump ship from a smooth process with GR but I'm not sure how to verify the authenticity of the offer and my good-standing to qualify.

Help would be appreciated!

[Nick Klomstad]

@Caleb Heimsoth I was told they are able to offer such attractive terms because of something called a community reinvestment credit that Chicago reimburses them for. Otherwise, they lose money on the transaction.

I figured for a company as big as Huntington I would be able to find some reference to this particular offering but I'm not able to find anything.

I've requested a loan estimate or something more formal but haven't received anything yet.