Can we roll closing costs into

the loan on a purchase?

This is one of the most common misconceptions in

the mortgage industry. You may have heard a

friend or family member mention they were able to

roll their closing costs into their mortgage loan;

however this is not entirely true.

What this really means is that they were able to

secure either a seller credit, which is when the

seller agrees to pay the costs because they sold

the house at more than the market value, or lender credit, which is when a lender will pay the closing costs in exchange for a higher interest rate.

 

See below:

  • Fannie Mae (Conventional): The only way to not pay your closing costs out of pocket would be to include a seller credit as a contingency of your offer or speak to your loan officer about a lender credit.

  • Freddie Mac (Conventional): The only way to not pay your closing costs out of pocket would be to include a seller credit as a contingency of your offer or speak to your loan officer about a lender credit.

  • FHA: The only way to not pay your closing costs out of pocket would be to include a seller credit as a contingency of your offer or speak to your loan officer about a lender credit.

  • USDA: You can roll the closing costs into your loan only if the house appraises above the purchase price.

  • VA: The only way to not pay your closing costs out of pocket would be to include a seller credit as a contingency of your offer or speak to your loan officer about a lender credit.

Residential Mortgage Group is a DBA of
Home Mortgage Alliance Corporation (HMAC) Corporate 

4 Hutton Centre Dr, Santa Ana, CA 92707

Phone 844-244-7320

Fax 714.398.8810

NMLS License # 1165808

Department of Real Estate DRE License Number - 01526821

Department Of Business Oversight DBO License Number - 603L284

This site is not available in New York. No mortgage loan applications for properties located in the state of New York will be accepted through this site.

TEXAS CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE, SIGN AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, Click here is access form 

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