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Old 07-08-2015, 09:29 AM
 
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Can you get a usda loan for more than the appraised value for closing cost etc.? Like if the home is appraised at 130 can you get 140 ?
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Old 07-08-2015, 11:14 AM
 
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Only if the seller signs a contract addendum re-setting the price, raising it by the amount of the Seller Contribution, and includes a line item stating that they will pay $xxx toward your closing costs and prepaids. The new price must be at or under the appraised value.
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Old 07-08-2015, 11:56 AM
 
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Base loan amount maxes at appraised value for USDA.
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Old 07-08-2015, 12:52 PM
 
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Quote:
Originally Posted by Pfhtex View Post
Only if the seller signs a contract addendum re-setting the price, raising it by the amount of the Seller Contribution, and includes a line item stating that they will pay $xxx toward your closing costs and prepaids. The new price must be at or under the appraised value.
Oh my God, I can't edit this. I mis-read your question, incorrectly assuming that the appraisal came in higher than the price.

Loan is based on the lower of the two. The poster above this post got it right the first time. Sorry about that.
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Old 07-08-2015, 02:57 PM
 
Location: MID ATLANTIC
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OP, there are two USDA loan products. The first is USDA Guaranteed Loan - this is a loan you would get from a loan officer at a bank, mortgage company or broker. This loan requires that you make no more than 80% of the median income for your area. The second loan available is a Direct Loan. A Direct loan you would get directly from USDA (no middle man) and the income caps are even less, and the interest rate is sharply lower.

Understanding there are two programs is important, because the guidelines for both can vary. At one time Guaranteed Loans DID allow you to roll in closing costs, as long as the appraisal supported the increased loan. I still have my marketing materials from Chase (who was a major USDA investor with lenders everywhere) as recent as 2011, form when I originated these loans . (I haven't done them in a while).

Another reason I am pointing this out to you there are two loans is the Direct Loan may still permit rolling in the closing costs. Your best bet is to contact your local USDA office for more information. Every office I ever worked with was very consumer friendly......they didn't want to hear from the lenders, but the consumers were very important to them.
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Old 07-08-2015, 03:51 PM
 
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USDA may allow you to finance up to 102% of the home value. This allows you a cushion of around $2,500 for closing costs to be rolled in on a house the appraises for $130k. You won't be able to finance an additional 10k. Why are your closing costs so high? They are typically much lower with USDA.
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Old 05-16-2016, 12:40 PM
 
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Hi All!
Im a bit stressed now. My agent called last Friday and saw in their system that we are "scheduled to fund" . We paid closing costs , sign loan docs this is just the process Im waiting. How much longer should we wait? The seller cant wait anylonger
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