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Can I roll up my closing costs into an FHA loan?

Is there an advantage to paying these costs upfront or does it not matter? by RWiggum from Auburn, Maine. Apr 30th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

In most cases, you cannot "Roll up your closing costs" into an FHA loan.. if your purchasing you can only finance 96.5% plus FHA's Upfront MI, so the costs have to be paid for.. if your doing a streamline FHA refi, your loan amount is limited to unpaid principal balance, plus unpaid interest, plus FHA's upfront MI, so you either pay the costs or your lender charges you a higher rate, and they pay the costs for you. If your refinancing a non FHA loan into an FHA loan, then you can add your costs so long as your LTV is below 97.75%... The best advice I can give you is to contact a LOCAL mortgage broker and let them do a side by side comparison for your review.. once you decide which way will benefit you the most, you can apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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. 480-287-5714 WilliamAcres.com

Apr 30th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

William from Velocity pretty much hit the nail on the head. However, I would look at all options as far as lender choices are concerned not all brokers are as he describes. I do agree with idea of not using the "Big Bank" "Big Box" lenders. You should always look local. You have someone if need be to get face to face with. Local or regional banks, Mortgage bankers as well as brokers. Rates and can very greatly ALWAYS get a GFE (Good Faith Estimate) ahead of committing.

Apr 30th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

If you pay the closing costs out-of-pocket, your monthly payments will be lower. Calculate the savings over the number of years you expect to be in the home, to help make a wise decision.

Apr 30th 2013
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Brendan Fontaine (brendan.fontaine)
#2 ranked lender in Maine - 89 contributions

Absolutely! Give me a call on 207-602-1670.

Apr 30th 2013
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Will Zinn (mainewill)
#7 ranked lender in Maine - 22 contributions

You will have the choice between a "no appraisal" and a "with appraisal" loan. The "no appraisal" option will be better as long as your mortgage broker is willing to give you a huge lender credit to offset your closing costs. On that loan closing costs CANNOT be rolled in so the only option for not bringing the money to closing is to have the lender pay it. I own my own small mortgage company, have very low compensation and overhead which allows me to give huge lender credits so call me anytime at 671-8292. On more thing...IMPORTANT!!! You must have your FHA case number pulled in the next 3 weeks or your new loan will have LIFETIME mortage insurance on it.Call me anytimeWillTop Flit Financial207-517-2207

Apr 30th 2013
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Seth Jacobs (MaineMortgageBanker)
#6 ranked lender in Maine - 116 contributions

Every borrower is has a unique situation. It may make sense to roll them in, it may make sense to pay them up front. Are you buying a new home or refinancing?

Apr 30th 2013
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Baris Evans (barisevans)
#20 ranked lender in Ohio - 23 contributions

Our goal is to innovate your current business standard with our dynamic financing method get back to us with you project plan we can close in four working days.Email: mohamed1@mail2uae.comRegardsMohamed Al Jabri

Apr 30th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Absolutely you can just add them onto the loan on a refinance if it is a credit qualifying. On a Streamline you won't be able to but you can have the rate raised up to cover them or bring them to close. On a purchase you can do the same thing

Apr 30th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

William's assesment is correct

Apr 30th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 314 contributions

Yes, If you have enough equity in the loan

Apr 30th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,784 contributions

Sure... Not only can you, almost everyone does. The rules allow up to 6% of the loan amount. www.joemetzler.com/fhaloans.htm

May 1st 2013
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Raymond Denton (Raymond)
#11 ranked lender in Ohio - 224 contributions

Yes, if you're refinancing.

May 1st 2013
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