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FHA down payment and closing costs?

New Contributor

FHA down payment and closing costs?

I'm looking into buying a home in May 2013 and want to have everything in order before getting a loan approval. My question is, if I want to buy a home for $285,000.00 and I have $10,000.00 for down payment, would that down payment include the closing costs? Do I have to have the 3.5% down for FHA and also closing costs or is it all included in your down payment? Thanks in advance for your help.

8 REPLIES
Valued Contributor

Re: FHA down payment and closing costs?

That down payment would just cover your down payment, you still need to cover closing costs. you can take negative points to help cover them.

Regular Contributor

Re: FHA down payment and closing costs?

+1

Established Member

Re: FHA down payment and closing costs?

That 10,000 would cover your downpayment as 285,000 x 3.5% = 9975,

 

ask the seller for closing help which would usually be around 3% but I'd ask for full closing help

so that you don't have to come out of YOUR pocket.

Moderator

Re: FHA down payment and closing costs?

If you only ask for closing costs you will end up paying money at closing. Make sure you ask for X% to cover closing costs AND pre-paid expenses (to cover your pre-paid interest and your escrows and insurance expense)

Established Contributor

Re: FHA down payment and closing costs?


StartingOver10 wrote:

If you only ask for closing costs you will end up paying money at closing. Make sure you ask for X% to cover closing costs AND pre-paid expenses (to cover your pre-paid interest and your escrows and insurance expense)


If you ask for X to cover closing AND pp expenses, do you still only have to come up with 3.5% or would asking for those items effectively lower your downpayment by the sum of those credits? if approved of course.

Chap7 discharge 7/29/15
Fico 11/20: TR:595(high util)
Cap1(Plat+QS) 3500+2500/Merrick 1000/Express 1100.
Regular Contributor

Re: FHA down payment and closing costs?

You still have to put down 3.5% regardless.

Established Contributor

Re: FHA down payment and closing costs?

Figured that.  Thanks.



Chap7 discharge 7/29/15
Fico 11/20: TR:595(high util)
Cap1(Plat+QS) 3500+2500/Merrick 1000/Express 1100.
Moderator

Re: FHA down payment and closing costs?

The maxiumum percentage allowed by FHA for sellers' contribution is 6% of purchase price.

Check with your lender but normally the closing expenses are in the neighborhood of 3.5% to 4% of purchase price in addition to the 3.5% down payment.