Funds Required to Close on a FHA Home Loan
By admin | April 17, 2008
FHA requires a down payment of 3% of the sale price be paid; and will allow this to be in the form of a gift from a family member, significant other or grant; however, it cannot be paid by the seller or lender. FHA will also allow a seller to pay up to 6% of the sale price towards closing costs and prepaids. Without any contributions from the seller, you can expect to pay approximately 2% more at closing.
Closing costs are those fees charged for services provided and can be from the lender, title/escrow company or third party vendor such as the credit reporting agency or appraiser.
You will also be required to establish an escrow (prepaids) account when you close. This usually consists of 3 months property taxes and 4 months property insurance.
Topics: Uncategorized | 2 Comments »
December 26th, 2008 at 12:17 am
My loan had been approved about three weeks ago, put $1,500 in good faith, I am suppose to pay another $3,500 on Jan 6, 2009. Heard on the news that all FHA loans had been cancelled or put on hold. Does this mean my loan is cancelled?
any information would be greatly appreciated.
Sincerely,
Robert White
January 8th, 2009 at 12:27 pm
Robert, I would suggest getting a hold of your loan officer right away and direct all questions to him/her.
I’m sorry I can’t help more, but because I have no knowledge about your situation or loan, I am afraid I can’t answer much.
Good luck!!