Estimate of the amount I'll need at closing?

[Anonymous]

Can somebody help me estimate the amount I will need at closing for say house that sells for $170,000, FHA 30 year fixed, 3.5% down?

The 3.5% down is a give in.. 170K x 3.5% = $5,950

But is that all I'll need? Are there going to be other fees that can't be included in the mortgage? 

Thanks for the help.

[Tischer712]

From my readings on FHA loans, there will likely be some closing costs, credit check, appraisal fees, things of those nature. I think you might be able to get those things added into the loan. I am still trying to fully understand the FHA process. 

[rckstrscott]

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@Tischer712 wrote:

From my readings on FHA loans, there will likely be some closing costs, credit check, appraisal fees, things of those nature. I think you might be able to get those things added into the loan. I am still trying to fully understand the FHA process. 

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Well, I am going through the begining stages of the process, FHA, and on $180,000 home this is what was stated in my intial email:

"Downpayment, at 3.5% would be $6,300. If you didn’t get any seller tax credit, and don’t get any other closing costs paid for by the seller, then with the down payment + all of the closing costs (escrow account, 1-year of insurance, lender fees, appraisal, title insurance, attorney closing fee, etc.) I estimate you’d need to have $13,300 in funds on a $180k sales price "

[StartingOver10]

That sounds about right, but the OP should get a GFE from a lender if he is looking for something more specific.

If he is looking for "round numbers" so he knows how much to save, then your estimate is as good as any for the price range. The differences might be significant if he is in an area of high real estate taxes or high insurance.

[Anonymous]

Can't most of those fees mentioned be included in the mortgage with an FHA loan? 

I'm trying to find out exactly how much to save, and I will ask that fees that can be included in the mortgage be included in the mortgage.

[StartingOver10]

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@Anonymous wrote:

Can't most of those fees mentioned be included in the mortgage with an FHA loan? 

I'm trying to find out exactly how much to save, and I will ask that fees that can be included in the mortgage be included in the mortgage.

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There are a couple of ways to include the lender fees into a mortgage. The most common way is to have the seller pay some or all of your closing costs and prepaid expenses. That is something you would negotiate into the contract right up front with the seller. Some sellers will pay part or all of your costs, others won't. FHA allows a maximum of 6% of your purchase price for maximum seller's contribution. Most of the time you don't need 6% (if you do in this market, find another lender). Generally 4% of purchase price ought to cover most of your expenses excluding down payment. The only way to know for sure is to have an estimate by a local lender for the house you prefer before you make the offer.

The other way to get your costs covered is to have the lender pay some or all of your costs. The problem with that is they bump up your interest rate to get the additional funds to do it and IMO it is not worth it to pay so much extra per month for 30 years.

The best way is to have the seller pay as much as you can negotiate in the price. Otherwise, you are responsible for the loan costs if you want to buy.

Another way is to see if you qualify for any of the first time homebuyer programs offered by your county.