Profile picture for user5916932

Buyer high closing cost on fha loan

I am looking at purchasing a 142500 house.  After paying close to 5k
Toward down money and the seller concession of 6% is it still normal for us to have
7k left during closing.   This is a fha loan.  I was reading that closing costs
Would run only about 3-5 percent of the sale price of the house and we are seeing
Closing costs of over 15k.  Is this normal?  I assumed large origination fee.
  • May 09 2014 - US
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Answers (6)

Profile picture for jebus51881
I live 15 miles south of Pittsburgh and my closing cost were about $15,500 on a $174,000 FHA including 1% seller assist.  If you live in allegheny county, our fees and taxes are insane.

3.5% down.  1% transfer tax to the township or borough, loan fees, PMI, home owners insurance etc.  Plus a point buy from 3.875 to 3.750 on our interest rate.
  • May 10 2014
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Unless your credit score is low and/or you are paying a high origination fee for a low rate, you probably should not have any closing costs to pay for after the 6% concession.  Granted I am typing this at 6AM on a Saturday so I may have forgotten about something but $8500 for closing costs should be enough.  If you would like a second opinion, feel free to contact me through my profile.
  • May 10 2014
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It depends on where you are buying, just the Title Fees and Taxes for a property in York would be aprx $4665 but the same loan in Pittsburgh would be aprx $7600. What zip code is the subject property in? 
What is the interest rate? 
  • May 09 2014
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Profile picture for wetdawgs
Perhaps if you look at the break down of the costs (HUD statement), you'll get a clue why the costs are so high and can see the big contributors.   In addition to loan costs, it looks like you have 2.5% towards taxes.  How about insurance?  

  • May 09 2014
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Profile picture for user5916932
I live in pa and my taxes aren't high they are 3400 a year.  Could you please tell me what would
Be my closing cost roughly.   I was looking at 7k not 15k.
 
  • May 09 2014
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Profile picture for GMerino

Wow, 15K is high even considering the upfront MIP of $2493.75.  IMHO it would be okay to get a few quotes to make sure you are getting a good deal.  Not knowing what state you are in would be really tough to tell you what your closing costs should run.  Perhaps, you are paying a great deal of money in taxes?  But over 15K seems like a lot.

  • May 09 2014
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