Posted on: 01st Jul, 2012 11:44 pm
Hi there… I and all my siblings inherited my dad's house around 1 year ago. The property is paid for. One of my siblings has decided to buy out all of us. We have agreed at $10,000 apiece. She is been approved to receive a FHA loan from her credit union. Can she have closing costs or any other fees if any rolled into the FHA loan?
It will depend upon the FHA lender whether or not he will allow her to roll in the closing costs and other fees within the loan amount.
if this is being treated as a cash out refinance, the maximum the fha base loan amount can be is 85% of the appraised value.
if the mortgage amount can be raised to cover closing costs and prepaids and still be under 85% of value, then, yes, the closing costs and prepaids can be rolled into the loan amount.
if this is being treated as a rate and term refinance to buy out siblings, then the loan amount can be raised to 97.75% of the appraised value to cover closing costs and prepaids.
if the mortgage amount can be raised to cover closing costs and prepaids and still be under 85% of value, then, yes, the closing costs and prepaids can be rolled into the loan amount.
if this is being treated as a rate and term refinance to buy out siblings, then the loan amount can be raised to 97.75% of the appraised value to cover closing costs and prepaids.
