USDA Direct closing cost and credits?

Anonymous · ‎06-13-2012

Am in the process of closing a USDA direct loan. Have the GFE for the closing costs. Amount comes to about 6800. Sellers are paying 6000 towards closing cost. Will the 1000 earnest deposit be listed as a prepaid in the closing costs? Will the inspection cost that we paid be listed? The homeowners insurance is listed as a closing cost on the GFE but since we have to pay it BEFORE closing why is it listed? In total we will have paid 1000 earnest 375 inspection and 600 homeowners ins. Will we get any of this back?

jules0580 · ‎06-13-2012

it is my understanding that you can get your earnest money back at closing. If you paid the other thins before hand I dont think you can get a refund for it, but if your closing was coming to 6800 and they are paying the 6000, then your other payments could cover the 800 and you can get your 1000 back at closing.

Anonymous · ‎06-13-2012

That's what I was wondering. The inspection and homeowners are listed as closing costs. But since we have or will pay them before closing what do we get back? Say our actual closing cost are 5500 and seller put 6000 towards closing. Then do we get earnest of 1000 only or the 1000 and the 375 and the 600? Or no?

jules0580 · ‎06-13-2012

I believe you can only get the 1000 from what I have read,unless the closing people allow the sellers to cut you a check for the inspection etc.

Anonymous · ‎06-13-2012

Ok. Well I will be happy with anything back

I'll post an update when it happens in case anyone else is wondering. And if anyone reading this knows let me know.