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Can closing costs be included in the loan?

  • October 02 2009 - Richmond
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Answers (8)

yes they can.
  • October 24 2009
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On a refinance yes, it is customary to include the closing costs in the loan amount.  The loan amount is raised slightly to "roll in" the costs.

On a purchase it is not possible to include the costs in the loan amount, the buyer must bring this money to closing along with their down payment.  However, with purchase loans, there are a couple of ways to reduce your costs or even get rid of them entirely.  One option is to ask the seller to pay your costs as part of the negotiations.  Another option is to ask your loan officer to quote you a higher interest rate in exchange for a lender credit given at closing.  The size of the lender credit will vary depending on how much higher the rate is and what the secondary market is paying for rates on that day.
  • October 16 2009
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If you ask the seller to credit the closing costs, that will help you finance most of the costs. Hope this helps.
  • October 15 2009
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Profile picture for Ray Stevens
There is a lot of details missing from your question.  

If yoou are at the maximum LTV for the loan program you will have to come up with the difference.  This maximum is different for different program types and purposes (cash out vs. no cash out).

FHA is 97.75% no cash out vs. 85% cashout

VA is 100% no cash out vx. 90% cashout.

Other programs are at 75% to 80%.
  • October 11 2009
  • 0Yes

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Profile picture for Damon Daniels
Your question is rather ambiguous. Closing costs can be included in certain situations. Could you offer more details so that I may answer appropriately?
  • October 10 2009
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Profile picture for Justin Kennedy

Elgibbs,
what type of financing, purchase or refinance.

purchase - USDA program allows the buyer abilty add closing cost to loan, if the purchase price is lower than the appraiser value. one all transaction you can ask the seller to credit all or a portion of your closing cost. each program has different limits usalley 0-9%. in this case you are financing the closing over the life of the loan rather than lowering the purchase price.

Refinance - yes, up to allowed LTV (loan to value) limits per program.



  • October 02 2009
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As James has said, the short answer is yes.  I don't want to talk names offhand, but one came across my desk just recently.  They're definitely out there.
  • October 02 2009
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hi elgibbs7, the short answer is yes, however, due to market pricing and conditions, many lenders are not offering rates high enough to pay all closing costs for most loans these days...plus, in VA, the closing costs have been increased (doubled) in the last two years.
It is not impossible, but very hard to find these days!  Jim
  • October 02 2009
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