topic Re: FHA Loan Good Faith Estimate Seems really high in Mortgage Loans

USDA Loan Good Faith Estimate Seems really high

nicktheman — Tue, 14 Jul 2009 11:44:11 GMT

I don't have the estimate with me, but I am getting 5k towards closing and its still costing me $2600 more. Is that normal for an FHA loan?? This is without buying any points!

Message Edited by nicktheman on 07-14-2009 04:44 AM

Re: FHA Loan Good Faith Estimate Seems really high

Anonymous — Mon, 13 Jul 2009 14:23:12 GMT

We need to know more -- particularly, what's the sale price/loan value? To give you a benchmark, my c. $130,000 FHA transaction required approximately $10,000 in cash and credits to close, with a minimum 3-1/2% down payment (included in that total). So, my closing costs were something over $5,000.

Message Edited by oldhack62 on 07-13-2009 07:23 AM

Re: FHA Loan Good Faith Estimate Seems really high

nicktheman — Mon, 13 Jul 2009 14:45:07 GMT

The price is 130,000 and I am putting 3.5% down on it in PA. Not counting the 3.5% down I need 2600 more towards closings after the $5k from seller. So my closing costs are $7600.

Re: FHA Loan Good Faith Estimate Seems really high

Anonymous — Mon, 13 Jul 2009 16:49:42 GMT

there are fators that might be making it heger than necessary. We would have to see a breakdown. For example, if you are closing near the first of the month rather than the end of the month your pre-paids will be alot higher. In the end, 7600 in closing costs on a 130K house is under 6% of the cost which is well within normal parameters. On a smaller loan, the cost tends to be a larger percentage becuase all of the fixed costs take up a higher % of the loan value. For a 100-130K loan, 6% would not be that bad (but could be lower depending upon different factors). On a 300K loan, I would normall expect the percentage to drop down. In our case, the closing costs were about 11K on a 300K loan. But you have to keep in mind that alot of the fees are the same no matter the price of the loan.

Re: FHA Loan Good Faith Estimate Seems really high

nicktheman — Mon, 13 Jul 2009 20:44:18 GMT

Link to myFico post with GFE

Re: FHA Loan Good Faith Estimate Seems really high

Anonymous — Mon, 13 Jul 2009 23:01:38 GMT

I am not an expert, but I see nothing that seems way out of wack.

Re: FHA Loan Good Faith Estimate Seems really high

WannaHouse — Tue, 14 Jul 2009 02:51:34 GMT

Same here. Remember that your charges can be rolled into the loan providing you do not go over your max allowed by the lender. (USDA loans)

OOPS!! This header says FHA, the other thread says USDA.

Message Edited by WannaHouse on 07-13-2009 09:51 PM

Re: USDA Loan Good Faith Estimate Seems really high

nicktheman — Tue, 14 Jul 2009 11:43:59 GMT

Opps its USDA...