08-04-2010 02:37 PM
We are looking to get a USDA Guaranteed loan...hopefully soon. I am wondering what we will need out of pocket with this type of loan? Will we have to pay closing cost or will that be included in the loan?
Thanks so much!!
08-04-2010 03:58 PM
Here are my out-of-pocket costs so far:
Home Inspection ($250)
My closing costs are included in the loan.
08-04-2010 04:18 PM
With USDA you can include the closing costs into the mortgage if the home appraises over the sales price by enough. So for example if the sales price is $100,000 and closing costs are $4,000 and the home appraises for $103,000, the difference of $1,000 just has to be paid by someone (you or the seller most likely). This is a feature that is unique to USDA loans.
Otherwise expect to pay your earnest money (the amount negotiated on in the contract), appraisal fee ($300-500), a home inspection ($300-400), and then at closing it's whatever portion of the closing costs that cannot be financed into the mortgage or that are being paid by the seller (negotiated in the contract).
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO