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beastykato
Posts: 1
Registered: ‎12-27-2012
Re: Evaluating Conventional vs. FHA (VA & USDA)
[ Edited ]

Hi, I'm a first time home buyer and ran across this thread in a google search.  I was just hoping to post the USDA loan specifics that I was given to see if it's a good deal and all the costs look reasonable.  I really have no idea what I'm doing =P.  I understand the interest rates and such that go along with mortgages, but really have no idea at all about what to expect as far as fees and if fees and rates are even negotiable under a USDA loan to begin with. 

 

This is what I have been quoted thus far on a home where the asking price is $145,000 (no negotiating of the price has been done yet.)

 

Sale Price: $145,000

 

Closing Costs: $5040

 -Appraisal/Reinspection: 400

 -Credit Report: 75

 -Funding Fee: 205

 -Underwriting Fee: 305

 -Flood Certification: 25

 -Settlement Fee: 200

 -Document Prep: 200

 -Notary Fee: 25

 -Title Insurance: 1140

 -Title Endorsement: 175

 -Recording Fee: 250

 -Pest Inspection: 65

 -Transfer Tax Stamps: 1450

 -Home Inspection: 350

 - *Optional: Closing Protection Letter: 75

 

**** The above fees are slighlty off by ~70 dollars when I added them up.  I'm thinking the mortgage rep forgot to list something. 

 

Prepaid Items: $5984

 -12 month tax escrow: 1800

 -30 Days Prepaid Interest: 426

 -1st Year Homeowner's policy: 690

 -2 months insurance escrow: 180

 -USDA Upfront "MIP": 2959

 -2 months "MIP" Escrow: 99

*** again these costs don't add up to the total in bold.  I must be missing something because I doubt this guy is that bad at math??

 

Payment Breakdown (Loan Amount $147,959 @ 3.5% Interest and $1565 Required at closing)

 

 -P&I: 664.40

 -Taxes: 150

 -Insurance: 50

 -"MIP": 49.32

 

 -Total:  913.72