Am I reading this right?? GFE Math?

[chan85]

Total Estimated  Funds Needed to Close

Purchase Price: $95,000

Est Closing Costs: $5,218.50

Estimated Reserves: $1,605.37

FHA Funding Fee: $1,425.44

Total Costs: $103, 259.31

Loan Amount: $91,675

Seller Paid Closing Costs: $2,500

FHA Funding Fee Financed: $1435

Borrower Paid Fees $1500 (escrowed funds)

Second Mortgage (sub financing) $5000 (down payment asst in form of second mortgage)

Total Credits: $102,110

Cash From Borrower: $1140.31

So does that mean I am bringing $1140 to closing?? Or is that a credit? My math isn't the strongest, but shouldn't I be well under the cost of closing with $5000 in down paymet asst, $2500 from seller, plus the $1500 I put into escrow?

[thankfulheart]

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@chan85 wrote:

Total Estimated  Funds Needed to Close

Purchase Price: $95,000

Est Closing Costs: $5,218.50

Estimated Reserves: $1,605.37

FHA Funding Fee: $1,425.44

Total Costs: $103, 259.31

Loan Amount: $91,675

Seller Paid Closing Costs: $2,500

FHA Funding Fee Financed: $1435

Borrower Paid Fees $1500 (escrowed funds)

Second Mortgage (sub financing) $5000 (down payment asst in form of second mortgage)

Total Credits: $102,110

Cash From Borrower: $1140.31

So does that mean I am bringing $1140 to closing?? Or is that a credit? My math isn't the strongest, but shouldn't I be well under the cost of closing with $5000 in down paymet asst, $2500 from seller, plus the $1500 I put into escrow?

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My math has that being the correct amount that you will still owe at closing.  The seller is paying less than 1/2 of the closing costs and your escrow doesn't quite cover the reserves. The "funding fee" basically cancels itself out in the math.

DP: 3325

CC: 5218

PP: 1605

________

$10,148

S: -2500

B: -1500

2: -5000

________

$1148 still due

Does that make sense?

[Anonymous]

But, don't the Funding Fee get figured back into the loan?? Ours did..

[chan85]

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@thankfulheart wrote:

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@chan85 wrote:

Total Estimated  Funds Needed to Close

Purchase Price: $95,000

Est Closing Costs: $5,218.50

Estimated Reserves: $1,605.37

FHA Funding Fee: $1,425.44

Total Costs: $103, 259.31

Loan Amount: $91,675

Seller Paid Closing Costs: $2,500

FHA Funding Fee Financed: $1435

Borrower Paid Fees $1500 (escrowed funds)

Second Mortgage (sub financing) $5000 (down payment asst in form of second mortgage)

Total Credits: $102,110

Cash From Borrower: $1140.31

So does that mean I am bringing $1140 to closing?? Or is that a credit? My math isn't the strongest, but shouldn't I be well under the cost of closing with $5000 in down paymet asst, $2500 from seller, plus the $1500 I put into escrow?

---

My math has that being the correct amount that you will still owe at closing.  The seller is paying less than 1/2 of the closing costs and your escrow doesn't quite cover the reserves. The "funding fee" basically cancels itself out in the math.

DP: 3325

CC: 5218

PP: 1605

________

$10,148

S: -2500

B: -1500

2: -5000

________

$1148 still due

Does that make sense?

---

Hmm ok,. I am going to talk to the LO about applying more of the $5000 assistance program to the closing costs, it said it can be used for CC or down payment..... I would rather have it all go towards closing costs since I can't afford anymore out of pocket right now....Hopefully that works....

[thankfulheart]

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@Anonymous wrote:

But, don't the Funding Fee get figured back into the loan?? Ours did..

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I left the funding fee out of the equation since it was put back into the loan.

OP, unless my math is off somehow, you are still going to be short as I applied the whole $5K, plus your escrow, plus the seller's contribution towards the closing costs.  Adding up the closing costs, prepaids, and downpayment, you are still left owing.

[chan85]

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@chan85 wrote:

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@thankfulheart wrote:

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@chan85 wrote:

Total Estimated  Funds Needed to Close

Purchase Price: $95,000

Est Closing Costs: $5,218.50

Estimated Reserves: $1,605.37

FHA Funding Fee: $1,425.44

Total Costs: $103, 259.31

Loan Amount: $91,675

Seller Paid Closing Costs: $2,500

FHA Funding Fee Financed: $1435

Borrower Paid Fees $1500 (escrowed funds)

Second Mortgage (sub financing) $5000 (down payment asst in form of second mortgage)

Total Credits: $102,110

Cash From Borrower: $1140.31

So does that mean I am bringing $1140 to closing?? Or is that a credit? My math isn't the strongest, but shouldn't I be well under the cost of closing with $5000 in down paymet asst, $2500 from seller, plus the $1500 I put into escrow?

---

My math has that being the correct amount that you will still owe at closing.  The seller is paying less than 1/2 of the closing costs and your escrow doesn't quite cover the reserves. The "funding fee" basically cancels itself out in the math.

DP: 3325

CC: 5218

PP: 1605

________

$10,148

S: -2500

B: -1500

2: -5000

________

$1148 still due

Does that make sense?

---

Hmm ok,. I am going to talk to the LO about applying more of the $5000 assistance program to the closing costs, it said it can be used for CC or down payment..... I would rather have it all go towards closing costs since I can't afford anymore out of pocket right now....Hopefully that works....

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Ahhhh.... I see now, i was forgetting that 3.5% has to be put down! So I have to have some of the money go towards that. Wish I would have asked for more towards closing from the sellers now Hopefully some of the estimates are a little high as far as taxes and homeowners insurance so I can get the prepaid reserves down....

[JusdoNit]

Our estimates were given a bit higher because our broker said he'd rather we be prepared with higher estimates then unhappily surprised at closing

[chan85]

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@JusdoNit wrote:

Our estimates were given a bit higher because our broker said he'd rather we be prepared with higher estimates then unhappily surprised at closing

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Yeah, i think thats what my LO did. I know she has taxes at $125/mth and I already know that the current owners were paying maybe $100/mth. But I already am rearranging my finances to have some extra in case at the end of the month I need another $1000 or so. I was hoping I was going to get a check back at closing, guess that won't be the case

[gpeach]

I am reading this a little different. 

5218.50 (closing includes down payment)
1605.37 (reserves)
6812.57 Total expenses not being financed.

6812
-5000
-2500
-1600
------------
-2288 Back at closing

The FHA fee says financed so did not include that. Do you have a GFE? 

[chan85]

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@gpeach wrote:

I am reading this a little different. 

5218.50 (closing includes down payment)
1605.37 (reserves)
6812.57 Total expenses not being financed.

6812
-5000
-2500
-1600
------------
-2288 Back at closing

The FHA fee says financed so did not include that. Do you have a GFE? 

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I do, what I listed above is the exact thing listed on the GFE. According to it though, the closing costs are $5,218.50, and I have to put the 3.5% down, so another $3,325, plus prepaids $1605.37....