Reply
Valued Member
notw1031
Posts: 56
Registered: ‎03-16-2011
0

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.

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

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
indecison
Posts: 226
Registered: ‎05-24-2012
0

Re: FHA down payment and closing costs?

+1

Established Member
RBp
Posts: 12
Registered: ‎08-09-2012
0

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.

Community Leader
Senior Contributor
StartingOver10
Posts: 4,534
Registered: ‎03-06-2010
0

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
westo12
Posts: 584
Registered: ‎07-20-2008
0

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.

2014 Starting-618, current TU621 (TU 10/20) / Ending Goal score: 720 / 30 Positive TLs / 1 Negative: Unpaid $312 med CA placed 2010 / reported Install Bal/Lim: 25027/36512 | reported Revolving Bal/Lim: 11169/27232=41%util

**IN the garden until I get some auto CLI's on major accts**
Regular Contributor
indecison
Posts: 226
Registered: ‎05-24-2012
0

Re: FHA down payment and closing costs?

You still have to put down 3.5% regardless.

Established Contributor
westo12
Posts: 584
Registered: ‎07-20-2008
0

Re: FHA down payment and closing costs?

Figured that.  Thanks.



2014 Starting-618, current TU621 (TU 10/20) / Ending Goal score: 720 / 30 Positive TLs / 1 Negative: Unpaid $312 med CA placed 2010 / reported Install Bal/Lim: 25027/36512 | reported Revolving Bal/Lim: 11169/27232=41%util

**IN the garden until I get some auto CLI's on major accts**
Community Leader
Senior Contributor
StartingOver10
Posts: 4,534
Registered: ‎03-06-2010
0

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.

 


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}