I'm almost at the end of the process of buying a condo with a USDA Direct Loan. I tried getting it with a Guarantted USDA loan, but had to jump ship and go Direct for financial/credit reasons. That being said, the Condo is 67,000 and will probably appraise around $73,000 or so. I am getting a bit nervous that the closing costs are going to bring the cost over the appraised value. One good thing is that through my employer, I was able to join a Legal Plan for $15.00 a month that let's me use a Real Estate attorney at no charge for this purchase - and it includes title work, going to the closing, the whole works. I didn't get my GFE yet because the appraisal hasn't been completed yet by the USDA - I had one done prior because I tried via Guaranteed Loan and that appraisal came back at 72,000. Is $5,000 going to be enough for closing costs? Plus they have some repairs that I need to have done, and those estimates are about $2500 or so. They (USDA office) haven't mentioned anything about me maybe needing funds of my own to close, but I'm beginning to get nervous about that aspect of the loan because I don't have extra money right now.
