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Can closing costs be added to the loan amount?

by martin_462 from Woronoco, Massachusetts. Aug 31st 2016 Reply


Joe Metzler (JoeMetzler)
#18 ranked lender in Minnesota - 3,727 contributions

Absolutely... But, it can NOT be an after thought. it must be part of the actual purchase agreement. So for example, if you are buying the house for $200,000, and you want $6,000 "rolled into the loan", you would need to offer $206,000 for the house, and have "seller paid closing costs" of $6,000. Talk to your Real estate Agent and Loan Officer to make sure it is written up correctly. But this is how the vast majority of purchase transactions are done. It is know as "seller paid closing costs", but as you can see from my example, the seller really isn't paying anything, you are by increasing the purchase price to cover it.

Sep 1st 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,414 contributions

More info needed... Purchase or Refi... If you are purchasing a home, then there are many ways to get closing costs paid.. you can ask the seller to contribute towards your costs.. this is the most accepted way for purchase transactions.. you can ask the lender to contribute.. the lender will raise your interest rate and then offer you a "Lender Credit" which can pay for some or all of your costs.. You can ask your real estate agent(s) to contribute.. or you can receive a credit from a combination of all 3.. If you are putting the absolute minimum down, then the costs will have to be paid for.. if however, you are putting say 10% down, then the costs can be deducted from your down payment and your loan to value will be slightly higher.. If you are refinancing, then it's possible but you still have a maximum loan to value requirement to deal with and if you are doing any type of streamline reif, then most do not allow closing costs to be included.. the lender will have to offer you a "lender credit" in order to complete the refi.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 1st 2016
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