Hello, Reserves are required ...

Sat, 08 Aug 2009 14:44:00 GMT

Hello,

Reserves are required for your escrow account for property tax and insurance. Under a USDA, no other reserves apply.

You can finance closing costs up to the appraised value. Example: Purchase contract is for $100,000 and the home appraises for $105,000. You can finance up to $5,000 in closing costs. The seller is also permitted to pay your closing costs.

Hope this helps. You can learn more on our website or give me a call.

Best,
Steve

I think you may be confused ...

Fri, 03 Jul 2009 17:54:00 GMT

I think you may be confused about USDA vs FHA they are not the same. Or maybe I am not understanding your scenario. USDA loans are income driven and don't require a reserve. They will only pay up to 2 pts of the closing costs not all the closing cost. The lender you are working with may require reserves if your ratios are high or credit scores are low, but not USDA. Also if you don't have enough $$ for closing the seller is allow to contribute up to 6% on a USDA loan.
Of course this would need to be negioated up front on your purchase contract.
Good Luck, hope this helps.

Zillow Advice: Buying Process - USDA loan and mortgage reserves

Hello, Reserves are required ...

I think you may be confused ...