Profile picture for eamon millar

Can I roll closing costs into FHA loan in NYC

Looking at a property in Albany, NY.  It's short sale, bank approved offer at 82,000.  Tax assessment at 140,000.  I have the 3.5% to put down, but don't have the cash in hand to cover closing costs.  Are there any options for me? My wife and I make approximately $76,000, I have a 660 credit score, hers is around 620.
  • June 04 - Delaware Avenue
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Answers (4)

Profile picture for GMerino

Highly doubt that a bank will pay for closing costs but you should look at other options such as lender credits.  If you ready to go to the next step I would suggest you speak to a loan officer about pre-qualification.

  • June 04
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The answer is yes. FHA guidelines are universal, meaning that they don't vary from one lender to another. These FHA guidelines do allow a full 6% seller concession. A seller concession in NY is pretty much a credit or gift from the seller to you the buyer to be used towards closing costs. So even though almost every lender allows a 6% concession, you need to have the seller allow it in order to be able to take advantage of it. The other way you can roll your closing costs into your financing is via a lender credit. This is the lender you're using giving you money towards your closing costs. Keep in mind that banks aren't out there just giving free money away to you. These funds come from a premium they get when closing you AT A HIGHER INTEREST RATE. So in order to have a lender credit you can be certain that it'll mean you getting a higher rate than you would with a seller concession or if you paid your closing costs out of pocket. Feel free to contact me and is be more than happy to help in providing the numbers involved in both scenarios. Good luck!
  • June 04
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I also can help you with this.  I am free to talk to and give you alternative ways to proceed with closing cost.  My number is 989-529-0054 My name is Laura Schultz I am a loan officer at Flagstar Bank.  I can provide documents to you free of charge overnight to you within a couple of days.
  • June 04
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There are you would have to use a lender credit to cover your closing cost. It is very possible to have it setup where your only out of pocket expense is for your down payment, appraisal and home inspection. Feel free to contact me through my profile for a no cost, no obligation rate and fee estimate.

  • June 04
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