Can I roll the closing costs into the mortgage on an investment

4 Replies

Im working on 2 deals right now and it looks like i will be short on the closing costs on one of them. Can I roll the closing costs into the mortgage?

depends on the equity in the property, usually. may also depend on the bank. if you have enough equity in the property the bank should let you do it.

@Thomas Robb No if you are purchasing. You can ask for seller credit or lender credit if possible. 

I have done this on two properties. Ones under negotiation ask the seller to cover closing costs and raise your offering price to cover the closing costs.

@Thomas Robb yeah, if you are purchasing your down payment and closing costs must be separate from the loan.  There's a couple of strategies here:

  1. Ask the seller to pay for some costs
  2. Increase your purchase price by X and ask the seller for that same amount.  That way they don't lose any funds.  Your appraisal will have to be able to support the increase that amount though.  So this strategy may not work on every transaction but maybe it can fit here.
  3. The lender can offer to pay some of the costs.  In exchange they will charge you a higher interest rate.

Hopefully one of those 3 can work for you.  Good luck!

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