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New Contributor
ESA2012
Posts: 68
Registered: ‎09-17-2012

Re: How does this work

maybe someone can answer this..

my GFE says i need about 800.00 to bring to closing.. we are getting our house paid through a down payment assistance program (tribal) 3.5% they cover it, im getting 5000.00 towards closing from the sellers. We also paid 500.00 upfront towards the earnest. where does the earnest go? they told me towards the down payment but,... down payment is covered. we needed 4600.00 (roughly) and got a grant for 4999.00

New Member
bgirl112
Posts: 3
Registered: ‎05-13-2013

Re: How does this work

I'm doing new construction and put $1700 as earnest money plus $500 for additional upgrades. The builders are paying $3k in closing and my realtor is paying $2k, it would be great if my earnest money is refunded. Guess I will find out in September.
Established Contributor
jordanmedical
Posts: 1,011
Registered: ‎04-08-2012

Re: How does this work

My earnest money (1,000) went towards downpayment costs.

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Established Contributor
foofighter74
Posts: 828
Registered: ‎12-09-2012

Re: How does this work


ESA2012 wrote:

maybe someone can answer this..

my GFE says i need about 800.00 to bring to closing.. we are getting our house paid through a down payment assistance program (tribal) 3.5% they cover it, im getting 5000.00 towards closing from the sellers. We also paid 500.00 upfront towards the earnest. where does the earnest go? they told me towards the down payment but,... down payment is covered. we needed 4600.00 (roughly) and got a grant for 4999.00


Well how much are your total costs for getting the loan? You have a down payment, closing costs, and prepaids (insurance, interest, etc)...by what you've indicated here, your down payment was about $4600.  So the house you're purchasing is around $131,000.  You've got $5,000 from the seller, another $4999 from the down payment grant, plus $500 you've paid, and another $800 due at closing.

 

That's roughly $11,300 total to get the loan.  down payment is 4600, so about $6700 left in closing costs and prepaids.  Your earnest money will go to paying those.

New Contributor
ESA2012
Posts: 68
Registered: ‎09-17-2012

Re: How does this work

I relooked at my papers and the earnest is included in the costs towards the money needed so i will owe 607 at closing, i was given 2 GFE due to changing my interest rate.

Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011

Re: How does this work

I think my earnest money was like 15,000. Since USDA didn't require a down payment I would have gotten a check for 15k at closing.

 

But we went FHA instead, so instead of getting my money back I had to write a check for like 20k at closing to cover the down payment and closing costs.

 

We bought a house that was over the FHA limits, so every penny over the limit came out of my pocket. Ended up putting like 10 percent down.

Valued Member
stevieswife2011
Posts: 71
Registered: ‎11-09-2011

Re: How does this work

thanks for answering that question i actually called my lender and she told me that it would have to be USDA or a community program with higher interest rates and fees.   And after hearing it takes longer adn i have to qualify i am pretty sure it would not be worth the hassle.  Just blessed to have the money available to pay the down payment 


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