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New Member
brown5280
Posts: 4
Registered: ‎08-02-2011

USDA Loan- Out of pocket money.

I know closing cost can be rolled into the loan, but I assume things  like an appraisals, cedit pulls, etc have to be covered out of pocket.  How much should a I expect to have in savings to cover these costs.

Frequent Contributor
PixieQueen80
Posts: 292
Registered: ‎01-05-2010

Re: USDA Loan- Out of pocket money.


brown5280 wrote:

I know closing cost can be rolled into the loan, but I assume things  like an appraisals, cedit pulls, etc have to be covered out of pocket.  How much should a I expect to have in savings to cover these costs.


These costs I believe is dependent on the area you are in however for me (in Washington, DC) my appraisal was $515, credit reports $35 and home inspection was $325.  Roughly have $1000 should be sufficient I am assuming unless you live in  an area that is on par or has a cost of living that is less than Washington, DC.

Starting Scores (7/26/2010): EQ 517; TU 508; EX 527 (lender)
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Regular Contributor
veggs2000
Posts: 172
Registered: ‎07-06-2011

Re: USDA Loan- Out of pocket money.

I had to pay $275 out of pocket for the inspection and that was it.  Everything else was rolled into the loan and I actually walked out of closing with a check for $46 :smileyhappy:


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notmyj
Posts: 159
Registered: ‎09-02-2010

Re: USDA Loan- Out of pocket money.

I am expected to pay a total of $1500 when I close. This covers the inspection and appraisals, and other fees.

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Member
allmydogz
Posts: 7
Registered: ‎09-05-2010

Re: USDA Loan- Out of pocket money.

I am in the middle of this process for a USDA Guaranteed.  I just paid $450 for the appraisal and $580 for the inspection (including water quality).  I'm begining to wonder if I should get the extra 1% for these and other costs (if it appraises high enough), it's kind of getting expensive.  I will have to pay for my attorney also.  Any suggestions?


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Regular Contributor
Scope27
Posts: 232
Registered: ‎08-30-2011

Re: USDA Loan- Out of pocket money.

[ Edited ]

The USDA is dependent on the appraisal.  Loan amounts cant exceed the appraised value plus 2% (guaranteed fee bringing the total to 102%).  If the house appraises for around the same amount as it's selling then the majority of closing costs cannot be rolled in the loan.  I recently put in an offer for a house selling at 85k.  Comparable houses in the area values at 95k.  If my potential house appraises for 90k I can roll some if not all of the closing into the house but cannnot exceed 90k due to the guaranteed fee being the other 2% of my loans 102%.  Another thing I can do is offer 90k and write in my contract that the additional amount over asking is for the seller to pay closing costs. But if the house appraises under 90k I would have to come out of pocket for the amount over appraised value.   A last option is to ask for seller to pay closing without ever rolling closing into your loan.  It's really a guessing game until you have the appraisal done.  Once you get a good faith estimate best bet is to expect to pay all of closing (if you arent asking seller to pay) until you have the appraisal done.

 

Edit:  The info provided under assumption you are applying for the USDA Guaranteed loan.

New Contributor
iamwhoiam
Posts: 88
Registered: ‎06-01-2011

Re: USDA Loan- Out of pocket money.

Scope is right. Much is dependent on the appraisal.

 

I was just told my by USDA underwriter I needed to pay for the insurance and the inspection. Everything else "can" be rolled into the loan provided the purchase price is low enough to accomodate the closing costs (using the approval amount).

 

Ugh. This isn't going to be a fun process I fear.

Regular Contributor
notmyj
Posts: 159
Registered: ‎09-02-2010

Re: USDA Loan- Out of pocket money.

Its not that bad. I am in underwritting right now for a USDA garanteed mortgage and at first I was looking at closing costs as high as $2500. After everything was rolled in to the mortgage I was expected to pay $400 ish in addition to the $1000 hand money that I already paid at the closing table with a closing date of 1/6/12. If everything goes good and we close before 1/1/12 I will probably end up with out paying anything as the prepaid interest and taxes will be less. Its with this that I am trying to close ASAP. the seller has agreed to close in Dec if possible as well.

4/6/09 EQ 555 TU 498 EX 553
9/3/10 EQ 590 TU 566 (Just now starting the rebuild)
9/11/10 EQ 610 TU 627
10/21/10 EQ 625 TU 660
12/08/11 EQ 681 TU 648 EX 667
2/13/12 EQ 677 TU 658 EX 675

From 9/2010 to 2/2012 I have gotten $44k in available credit, and closed on my first home 12/23/2011. All was made possible by the people here. Stay with it, it is possible!

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