For Closing Costs, Now You Can Charge It

First American Title Insurance Co., touting what it describes as an industry first, is allowing consumers to pay home closing costs with their Visa credit card. Launched in Northern California in September, the program will be rolled out in Orange County and the rest of Southern California this month.

Under terms of the program, prospective home buyers can pay up to 2% of the sales price or loan amount--whichever is greater--to cover title insurance, escrow fees or home protection plans. The company said the card-payment option reduces the inconvenience of coming into the closing process with the wrong amount of money, and it helps buyers spread out these costs.

“Having the ability to charge these varying amounts will take the stress and delays out of closing and make the entire process a lot easier,” said Richard Pauletich, chairman of First American Title Guaranty Co. unit.

The company is hoping that 10% to 20% of these transactions eventually will involve a Visa, said Steve Bramble, vice president of the Guaranty unit.

While analysts said the program could become popular, they warned that consumers should make sure they can absorb higher credit burdens without putting themselves at risk.