Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
Re: FHA interest rates?? Michigan mutal programs??

I was pre-approved last week with Quicken for the maximum loan limit of 297,500.  My lender told me she would be able to give me a $7000 lender credit.  Is a lender credit something that can be used for closing costs?  The house we were looking at is $315,000, and she told me we would have to come up with about $30,000 at closing.  That would leave me to think that:

 

-Since loan limit is 297,500, we would need to come up with $17500 to bridge the gap between the limit (297,500) and the price (315,000)

-if she said I need to come up with $30,000 at closing, that would lead me to believe that closing costs are $12,500

-If closing costs are $12,500, could I apply the $7000 "lender credit" towards that, leaving me with $5,500 in closing costs?

 

If that is correct, I would need to come up with $5,500 for costs, plus $17,500 for the bridge between price and limit? Leaving me with a total out of pocket of $23K.

 

Does that sound right?

 

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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