- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (6)
USDA mortgages do allow closing costs to be financed into the loan amount as long as the appraised value comes in high enough to support the inclusion of closing costs. The guarantee fee of 3.5% is allowed to be financed in as well above and beyond the appraised value. For example:
Sales Price = 100,000
Closing Costs = 4,000
Appraised valued would need to come in at a minimum of 104,000. If the home only appraised at 100,000, then closing costs would need to be paid by you or the seller.
Closing costs never have to paid up front. Fees are due at time of closing, however lender must verify that you have the funds in the bank as a prior to close condition. I'd be happy to assist you. Feel free to contact me.
Sales Price = 100,000
Closing Costs = 4,000
Appraised valued would need to come in at a minimum of 104,000. If the home only appraised at 100,000, then closing costs would need to be paid by you or the seller.
Closing costs never have to paid up front. Fees are due at time of closing, however lender must verify that you have the funds in the bank as a prior to close condition. I'd be happy to assist you. Feel free to contact me.
- John Dietel, "MN Broker"
- Contributions:82
You don't say which bank wants you to cover the closing costs, your lender, or a bank owned property. Expect this kind of counter offer if you are not offering asking price.
Your agent should be the one to turn to. Your agent and loan agent can structure the offer to meet whatever your lender needs to see as far as seller contributions to closing costs, and the NET proceeds to seller.
Your agent should be the one to turn to. Your agent and loan agent can structure the offer to meet whatever your lender needs to see as far as seller contributions to closing costs, and the NET proceeds to seller.
- Andy Matejka, "tejks"
- Contributions:352
I'd recommend you negotiate the seller to pay the CC even if it comes down to having to raise your offer if you are able to afford it.
This way you can technically finance the closing costs into a higher loan amount.
This way you can technically finance the closing costs into a higher loan amount.
- wholesalestunna
- Contributions:5
We were trying to have the seller pay the closing costs but they made a counter offer wanting me to instead. I guess the extra 4k dollars sounds consistent with the 3.5% fee.
I'm either going to have to find another lender, or a cheaper house I guess.
I'm either going to have to find another lender, or a cheaper house I guess.
- Andy Matejka, "tejks"
- Contributions:352
Did you negotiate for the seller to pay closing costs?
the USDA RD Fee of 3.5% is standard but can be financed into the loan. So you technically have a 103.5% loan.
It's a super program if your income and property qualify.
the USDA RD Fee of 3.5% is standard but can be financed into the loan. So you technically have a 103.5% loan.
It's a super program if your income and property qualify.
- wholesalestunna
- Contributions:5
Okay, he also factored in a 4k dollar fee to use the USDA loan? Anyone have any input?
USDA Mortgage Problems
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.