Roll over closing cost with mortgage loan

[chet everett]

Originally Posted by VictorBurek

Chet, the upfront charge on FHA is now 2.25%. The monthly factor is .55 if ltv over 95% and .50 if under 95%.

It's been a while since I had a buyer using FHA, which also points out why the OP or any buyer should make sure the mortgage folks they are dealing with have are actively closing FHA loans. Personally I have never been involved with a USDA backed loan, but I am aware of their existence. Just like VA the are additional limits to who / where such loans are available. The alphabet can be confusing...


The OP should NOT feel like an idiot, as questions unasked are the only kind that really have the potential to blow up in your face.

The questions raised here, about closing costs on new purchase are important to LOTS of people's understanding of how to decide on what they can 'afford'... Should happen BEFORE shopping, and certainly will lead to more solid offers.

[TimtheGuy]

Originally Posted by VictorBurek

On USDA you can roll the costs into the loan up to 102% of the purchase price.

It is true that you may be able to roll some costs into the loan on a USDA loan if it appraises higher than the sales price. Of coarse not too many people qualify for USDA financing, so they are not really the 'norm'.

[Snowdude38]

Originally Posted by VictorBurek

On USDA you can roll the costs into the loan up to 102% of the purchase price.

How does one get a USDA purchase loan? Does it have to be a farm property?

I live in a rural area and am trying to take advantage of the low costs of entry level market that has resulted after the market adjustments from 2007 until today. I don't have a lot saved up due to soaring rents here in NorCal area. So if I can get a loan without much out of pocket cash, I'd consider this a serious win-win situation for everyone!!

Many homes out there in this area that are now bank owned due to foreclosures, have found a few that I could afford to buy and spend half or even less than half on what it is now costing me to rent.

Thanks for any help the folks here can provide, much appreciated!!

[thelopez2]

Originally Posted by Snowdude38

How does one get a USDA purchase loan? Does it have to be a farm property?

I live in a rural area and am trying to take advantage of the low costs of entry level market that has resulted after the market adjustments from 2007 until today. I don't have a lot saved up due to soaring rents here in NorCal area. So if I can get a loan without much out of pocket cash, I'd consider this a serious win-win situation for everyone!!

Many homes out there in this area that are now bank owned due to foreclosures, have found a few that I could afford to buy and spend half or even less than half on what it is now costing me to rent.

Thanks for any help the folks here can provide, much appreciated!!

USDA loan are location specific and doesn't have to be a farm. It looks like you did the rent versus buy, not get your stuff together and apply for a loan. You can call a lender, loan broker and just ask if they do USDA loans.

http://eligibility.sc.egov.usda.gov/...y&stateCode=06

It looks like Lake County is eligible.