QUESTION:
I have a very limited of cash available to pay my closing costs. Can the closing costs be included in my USDA loan?
Thanks!
F. Kearns / Sarasota, FL
ANSWER:
Thank you for your question. Yes, you have a few different options in regards to closing costs and USDA home loans.
- The seller of the home can contribute (pay on your behalf) up to 6% of your closing costs.
- You can increase your loan amount (roll in) any closing costs as long as the home appraisal supports it.
Example –
Contract sales price/loan amount – $100,000
Appraised value – $108,000
Closing costs needed – $5,000
New loan amount with closing costs rolled in – $105,000
This is ok as since the home value is higher than the sales price of the home. In addition, you can do a combination of both 1 and 2.
This added flexibility of the USDA home loan truly does allow buyers to move into their new home with little or no money out of pocket.
Read more about USDA Closing costs and all the most common 2014 FAQ’s at https://usdamortgagesource.com/blog/2014/frequently-asked-usda-rural-housing-loan-questions/
Questions ? please visit our web site www.UsdaMortgageSource.com to learn more about zero down usda home loans.