Can closing costs be financed into an FHA loan, or do they absolutely have to be paid at the time of closing?

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OneOneTwoZeroOne

in Accounting 13 years and 4 months ago

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OneOneTwoZeroOne | 12 years ago

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Yes I closed in July. I was able to negotiate the seller into cover all closing cost. I was only responsible for my lawyer fees.

blue1892 | 12 years ago

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Oneonetwozen – were you successful in getting the seller’s concession?

adam_dahill | 13 years and 4 months ago

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The only way they can be financed is if you structure a seller’s concession aka seller paid closing costs. Typically you will come to a verbal agreed upon price for the home. Let’s say 500k in this example. Let’s also say that closing costs will be 15k. Have the contract drawn up with a purchase price of 515k and have the seller pay 15k of your costs. That’s how it’s done and that’s the only way you can do it. The FHA Upfront Mortgage Insurance aka the UFMIP is typically financed so you do not have to worry about that with the seller’s concession. FHA loans allow up to a 6% concession. -Adam Dahill WCS LENDING adahill@wcslending.com