USDA Loan Good Faith Estimate Seems really high

[nicktheman]

I don't have the estimate with me, but I am getting 5k towards closing and its still costing me $2600 more.  Is that normal for an FHA loan??  This is without buying any points!

Message Edited by nicktheman on 07-14-2009 04:44 AM

[Anonymous]

We need to know more -- particularly, what's the sale price/loan value? To give you a benchmark, my c. $130,000 FHA transaction required approximately $10,000 in cash and credits to close, with a minimum 3-1/2% down payment (included in that total). So, my closing costs were something over $5,000.

Message Edited by oldhack62 on 07-13-2009 07:23 AM

[nicktheman]

The price is 130,000 and I am putting 3.5% down on it in PA.  Not counting the 3.5% down I need 2600 more towards closings after the $5k from seller.  So my closing costs are $7600.

[Anonymous]

there are fators that might be making it heger than necessary.  We would have to see a breakdown.  For example, if you are closing near the first of the month rather than the end of the month your pre-paids will be alot higher.  In the end, 7600 in closing costs on a 130K house is under 6% of the cost which is well within normal parameters.  On a smaller loan, the cost tends to be a larger percentage becuase all of the fixed costs take up a higher % of the loan value.  For a 100-130K loan, 6% would not be that bad (but could be lower depending upon different factors).  On a 300K loan, I would normall expect the percentage to drop down.  In our case, the closing costs were about 11K on a 300K loan.  But you have to keep in mind that alot of the fees are the same no matter the price of the loan.

[nicktheman]

Link to myFico post with GFE

[Anonymous]

I am not an expert, but I see nothing that seems way out of wack.

[WannaHouse]

Same here. Remember that your charges can be rolled into the loan providing you do not go over your max allowed by the lender. (USDA loans)

OOPS!! This header says FHA, the other thread says USDA.

Message Edited by WannaHouse on 07-13-2009 09:51 PM

[nicktheman]

Opps its USDA...