closing costs on a house

[flexed1]

have a friend in Dallas who wants to roll her closing costs on her new home into a mortgage she will be getting. can you do this or do mortgage companies not finance closing costs? I know some home builder do.

 

[Bigsatan13]

Yes you can providing that the appraisal is high enough. I refinanced and rolled the closing into the loan.

 

[VicTusDeuS]

Of course you can...That's exactly what many poorer low class people are doing to get homes in my area "with as little as 3% down." They are leaving the ghettos only to have it follow them....Crime is up 10% in my town since 2000.

Anyways, yeah you can have the closing costs built into a mortgage. Closing costs alone could run your more than 10,000 so it fits in there nicely. If you put less than a required amount down though you might have to pay an extra fee as mortgage insurance.

 

[BloatedCow]

I'm going to try that. I want to get into a house for about 3% down. I'm tired of the ghetto. The house I'm looking at is just over $300k, which is a cheap house here in Los Angeles.

 

[flexed1]

In austin a $ 286,000 3100 square foor house ( 1 story) would be $ 12,000 in closing cost 5 % down $ 14,000 for a total of $ 26,000. most folks seem to put 3 % down in Texas as well.

 

[addickt]

All based upon the appraisal and credit score.

Lenders will let you borrow more if you have good credit and the LTV (Loan to value) is low.

There are even 125% programs out there, but those rates are shitty.

She could probably get away with rolling the closing costs on the house but tell her that it also may be beneficial to look into closing a simultaneous second mortgage rather than having to borrow the larger amount on one.

 

[MattTheSkywalker]

a simultaneous second mortgage rather than having to borrow the larger amount on one.

That's a good call.

The way this works is for example - buyer has 5% to put down, so they borrow (with a seocnd mortgage) enough to provide 20% down for the first mortgage.

 

[spongebob]

That's a good call.

The way this works is for example - buyer has 5% to put down, so they borrow (with a seocnd mortgage) enough to provide 20% down for the first mortgage.

right. this is called a 80/15/5. this can be done all as one note, the lenders should tell you about it. basically you have the 5% and borrow the 15% so that you have 20% down. this is done to avoid mortgage insurance. if you put down 20% you dont have to pay monthly mortgage insurance which is built into a standard 95/5 loan, thats only 5%.

another way to avoid mortgage insurance is to go VA which only veterns can do. because VA gaurentees the loan and you dont need a down payment.

im not postive but you will still have some closing cost associated with the purchase. the insurance premium and taxes.

people can get into houses for 0$. anything you cant roll into the loan, just ask for an cash back from the seller for repairs. its a side addendum thats between you and the seller.

 

[Jae]

Is she the seller? If not, I would require the seller to pay all closing costs. If she is the seller, I would deduct closing costs from realtor fees if she used one. Realtor's are responsible for helping people get rid of the closing taxes and such.