Hi All, I have a question regarding closing cost. The only thing holding us back on purchasing a home is 2 small chargeoffs that I want to clear up and funds for closing. Can someone tell me if it is possible to roll most or all of the closing cost into the amount financed? Also, I qualify for VA, I am a vet. My wife and I are really tired of making our Apt Complex rich. We would like to buy around March or April of next year depending on how things progress. But would be willing to buy sooner if we could get our closing cost wrapped into the loan. My middle score is about 622. Thanks MK
With a VA loan, the seller is allowed to pay the closing costs. (In other words, the VA loan provider doesn't care who pays the closing costs.). So, all you need to do is have the seller raise the selling price of the home to offset the closing costs. Most real estate agents and sellers won't have a problem doing this for you. For example, if the house is selling for $100,000, and your closing costs are going to be $4,000... Have the seller sell you the house for $104,000, with them paying the $4,000 closing costs. However, with that said, you might want to reconsider jumping into a mortage if you're not really ready to do so. Do the math before you choose to stop renting. A VA loan is very expensive (2% is paid by the borrower as a service fee). It may end up costing more than renting in the short-term. You may be better off saving up a down payment and getting a conventional loan in a few years.
I got a VA loan last Oct at 7% (good rate last Oct) with avg scores 0f 590. NOTHING down, and about 400.00 back at closing. My scores are only about 605-610 right now, and am in middle of a refi at 5.2%. We did exactly as prev poster said, if house is 100,00, have seller sell to you at 105,000 with 5k towards closing. Good luck to ya.
