How much cash will we need to close?
We are going to be looking at an FHA loan for a suburb outside of Springfield, MA. The FHA limit in that area is right at 318K, and I am sure we will be hitting that limit. How much cash will we need to close? We will be relocating for my husband's career and his company will pay up to 2% of the purchase price of the home in closing costs and will wire these funds to the closing table for us. They will NOT pay for any kind of PMI/DMI as a part of their 2%, and I believe I have seen that FHA loans require an upfront 1.25% in mortgage insurance (credit rating for us is hovering around 800).
So, I know we will need the 3.5% downpayment=$11,100
What else? If we ask for seller's to contribute 1% of closing costs, can that go towards paying the DMI?
Can anyone knowledgeable estimate what closing costs might be? I know we can get this in a good faith estimate eventually, but are aren't there yet and I want to make sure we have enough cash to close before we get started. I have other settlement statements from previous sales/purchases but since this is an FHA loan and in a different state, I am not sure what to expect.
Yearly real estate taxes are about 4000 on the homes we are looking at. We will be setting up an escrow account to pay for homeowner's ins and for the property taxes.
We are not expecting to pay any points most likely, but I am sure there will be an origination fee, etc.
THank you in advance for any responses!
Last edited by SallieandJames; 04-13-2009 at 08:56 AM..
Reason: to give more info
|
Welcome to City-Data.com forum! Make sure to register - it's free and very quick! You have to register before you can post and participate in our discussions with 700,000 other registered members. User profiles and some forums can only be seen by registered members. After you create your free account you will be able to customize many options, you will have the full access to over 15,000 posts/day about local topics and you will see fewer ads. 
Linear Mode
