Posted on: 15th Nov, 2013 07:11 am
if area loan limit is1000,000 and the house you want is 80,000 can you finance closing costs, escrow deposits, insurance and taxes in a 502 loan?
Hi pataboy,
As far as I know, you will be liable for paying the down payment amount or else you will have to go for a private mortgage insurance. Nevertheless, you should speak to your lender and take his opinion in this regard.
Thanks
As far as I know, you will be liable for paying the down payment amount or else you will have to go for a private mortgage insurance. Nevertheless, you should speak to your lender and take his opinion in this regard.
Thanks
Hi pataboy!
Welcome to the forums!
You may finance closing costs but I don't think escrow deposits, insurance and taxes may be financed.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
You may finance closing costs but I don't think escrow deposits, insurance and taxes may be financed.
Feel free to ask if you've further queries.
Sussane
You cannot finance closing costs into the purchase. You can ask the seller to contribute up to 6% on 502 loan in TX, but taxes, insurance and escrows cannot be included in that contribution. You will pay 1 yr of taxes and insurance plus 3 months. Those will be held in the escrow account to cover your first 1 yr of payments.
Get in touch with your lender and discuss about this matter.