usda direct closing costs

[Target1212]

Seeing that the government is still shut down , I can't ask about closing costs. I know they can be rolled into the mortgage, but.I'm basically maxing out how much I can borrow, so I assume I can't now ! How much usually are closing costs around ?

[primeonetx]

Every lender is different and you don't need to wait to ask the question because lenders are not shut down, only USDA guarantees are shut down.  The closing costs also depend on the area (city and state), so you should shop based on the lender's costs then ask what the rest of the costs are.

Scott Drescher

[Target1212]

Well, I'm doing it Direct, not through the bank. So, there's no one i can talk to.

[primeonetx]

Why are you doing it direct?  I have never heard of anyone actually doing it although I see in on their site.

Scott Drescher

[Target1212]

Directly through the USDA office. There's no bank or anything involved, which is nice except in this situation. There's several in every state but you have to meet income requirements in addition to credit.

[primeonetx]

I'd check with your favorite lender to find out whether there is actually an advantage to going direct.  There may be no advantage but only disadvantages.

Scott Drescher

[Target1212]

Thanks, now that governments back (yay!) I got to talk to her. Incase anyone wonders she expects it to be 3-4K (including escrow). The only disadvantage it the wait it takes to go through the process. After talking to many bankers I definatly find the advantages to outweigh the wait. Lower closing costs (can be rolled into mortgage), low interest rates (I was told 3.75 last month), no downpayment nor PMI. Plus I am able to get much more than I could elsewhere (150K whereas it would be like 50K through FHA). Great program! 

[primeonetx]

Remember, all USDA loans have their own version of PMI -- it's called their guarantee fee and it's permanent, not just down to 78% like conventional.  Good luck with your home purchase.

Scott Drescher

[DanTheMan77]

USDA Direct does not have PMI or funding fee, only guaranteed.