Hi Everyone,
I need help before we lock in our rate. Right now we are looking at 2 options with USDA...... 3.5% with 3/4 point or 3.625% with no points, we have decided to go with the 3.5% with 3/4 point, though this will cost us a little more at the table, it will save us money each month for the next 30 years. This just seems like the more financially responsible way to go. Our one concern with our loan is that our LO added a 3.5 % deposit that we paid the builder to our sales price. Is this practical? We were planning to use the down payment towards options. Applying the down payment to our sales price increases our sales price by 12,300 thus raising our taxes. We aren't sure we like this. Has anyone else paid out of pocket and it not been added to the sales price, is this an option? Or does it have to be added on to the sales price? Any input would be great!
Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
The sales price in the contract is 410K, but it also states in the contract that we have to pay a start up fee of 3.5%, The LO wants to know where this money is going? We are using it for upgrades since USDA does not need a down payment. LO wants to know if this deposit will go as a credit for closing costs. Can we leave the sales price and pretend like this deposit was never paid or will it need to be added to sales price to show proof of where the deposit went?
