im looking at a house for 230,000 i will put 20% down but want to finance closing costs is that possible.?

Question

i have another 10,000 but i want to use that for painting and buying furniture... do you think if i put 20 down will they finance closing fees

ok its not a one bedroom its a 4 bedroom house. i live in the midwest so i guess home prices are cheaper..

Answer 1

Yes you can have the closing costs built into the financing if you choose.

Answer 2

Yes, you can finance closing costs. However, if you add financing costs to the 80% of the purchase price you need to finance anyway, you're still above 80% of the purchase price, which will mean either PMI (albeit at a relatively low rate), or splitting your loan into a first and a second.

Lenders value property upon the Lesser of Cost or Market principle that's familiar to all accountants. But if you're financing 80% of the official purchase price PLUS closing costs, that's over 80% of the value of the property.

There exists another solution: Have the seller give you an allowance for closing costs. Of course, this is going to boost the official sales price, so you end up owing more money, but it is an option, however poor it is.

Personally, I'd rather put the money to the deal, have 20% equity, and paint the house myself while finding interim furniture whereever I could, if I needed to do so. But your preferences may be different. There is no magic "make the closing costs go away!" solution (none that are legal, anyway).

Answer 3

It is so hard to hang onto a house when you do it that way. I understand all too well the need and longing for your own house. I did some of the same thing that you are talking about. I spent fifteen years working my butt off in order to keep my beloved house. Eventually I lost it anyway. As far as I can see the only people that bennifitted at all was the banks and the realestate companies that sold it and bought it.
The next time I buy a house I will have most of the money ahead.
The banks will atay well out of it.

Answer 4

Wow, where do you live that houses only cost $230? You can't even get a two bedroom bungalow for less than $350 anymore. A three bedroom bungalow goes for around $500gs these days. Seems they never stop rising.

You had better check in advance with your bank and see how much you can borrow. You don't want any surprises.

Don't they have pre-approved mortgages? Where they tell you the maximum amount they will loan you upfront? That way you know what you can afford, all costs included.

Answer 5

yes this is possible. They will just wrap the closing cost into the mortgage. Hopefully your house will appraise for the price of the home plus the closing cost. Lenders are cracking down though. See if the seller will offer closing cost assistance.

Answer 6

Fannie Mae and Freddie Mac finance real property, not closing costs. Perhaps you can negotiate for your seller to pay those for you. With a 20% down the seller can pay all of your closing costs if so motivated.

Answer 7

I think they will, but the 20% you put down may need to be 20% of the financed amount (principle + the fees) - ask the lender you are applying to.

Answer 8

Ask your Realtor about a seller contribution. Make them pay for it. In a down market like this it happens all the time. Your seller can pay up to 3% of the purchase price towards your closing costs.

Check out www.lakecitymtg.com

Answer 9

sure they will depending where you buying the house housing market is too slow when u put offer for a house put atleast 10000 dollars less and ask for clossing help in your offer they iether accept this one or they going tocome back and say full price with closing cost thats the way to go.

Answer 10

Oh yeah. You can figure in costs in the total amount of the loan if you want. It's smart to keep some money for spending so you don't acquire a bunch of debt right away.