FHA question (loan, real estate, refinance, loan)

[ogplife]

Are you allowed to roll all closing costs of an FHA loan into the mortgage without penalty like points etc?

[Daddys///M3]

That depends. If this is a purchase we are talking about then no. If it is an FHA streamline refinance then yes provided that you have sufficient room between the original loan amount and the current principal balance. If it is an FHA cash out refinance then yes.

[renriq02]

actually the streamline FHA also allows it
FHA streamline with appraisal will do it

to the OP

You can roll it in on a refinance if you have the equity
You can roll it in on a purchase if the seller gives permission to do so, and the appraised value allows it.

Originally Posted by Daddys///M3

That depends. If this is a purchase we are talking about then no. If it is an FHA streamline refinance then yes provided that you have sufficient room between the original loan amount and the current principal balance. If it is an FHA cash out refinance then yes.

[Daddys///M3]

Originally Posted by renriq02

actually the streamline FHA also allows it
FHA streamline with appraisal will do it

to the OP

You can roll it in on a refinance if you have the equity
You can roll it in on a purchase if the seller gives permission to do so, and the appraised value allows it.

My understanding on a FHA streamline without appraisal (the majority of my streamline business is without appraisal as the purchases are mostly less than a year old) is that the max loan amount is the lesser of the original loan amount, including UFMIP, plus the new UFMIP or the current payoff plus costs.

Seller concessions are one thing, rolling closing costs into a purchase loan is something completely different.

[SmartMoney]

Originally Posted by Daddys///M3

My understanding on a FHA streamline without appraisal (the majority of my streamlin business is without appraisal as the purchases are mostly less than a year old) is that the max loan amount is the lesser of the original loan amount, including UFMIP, plus the new UFMIP or the current payoff plus costs.

Seller concessions are one thing, rolling closing costs into a purchase loan is something completely different.

Renriq2 was only speaking in the OP's language - not in the technical sense. All too many times realtors take a shortcut in their explanation and just say "there won't be any closing costs, we will just roll them into the deal." "Seller concessions" is not an easily understood term to the average first time buyer.

I'd be a rich person if I collected money on every time I had to unravel that phrase for a borrower as heard from their real estate agent.

[Daddys///M3]

Originally Posted by SmartMoney

Renriq2 was only speaking in the OP's language - not in the technical sense. All too many times realtors take a shortcut in their explanation and just say "there won't be any closing costs, we will just roll them into the deal." "Seller concessions" is not an easily understood term to the average first time buyer.

I'd be a rich person if I collected money on every time I had to unravel that phrase for a borrower as heard from their real estate agent.

I see. Thanks for the clarification.