Can I wrap the closing costs into the loan?

Lynchburg, VA · Member since 2017 · 61 posts · 41 votes

Hey all! I am in search of a 4-plex to use an FHA loan on and house hack it. My question is can I wrap the closing costs into the loan instead of having to dish out 8000-9000 for this out of pocket? Looking forward to hearing back from you guys!

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Chris MasonPro Member

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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

If you're getting a good deal, absolutely.

- $500k home.

- Write offer for $510k, asking for a $10k seller credit.

- Rational seller will view it as a $500k offer.

- We said above that you're getting a good deal, so appraising at $510k shouldn't be an issue.

Appraiser must review contract to confirm that this isn't unusual for the area. It is normal here in the Bay Area, so generally not an issue.

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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
If you're getting a good deal, absolutely.
- $500k home.
- Write offer for $510k, asking for a $10k seller credit.
- Rational seller will view it as a $500k offer.
- We said above that you're getting a good deal, so appraising at $510k shouldn't be an issue.
Appraiser must review contract to confirm that this isn't unusual for the area. It is normal here in the Bay Area, so generally not an issue.
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Kevin Allen
Louisville, KY · Member since 2015 · 166 posts · 83 votes
9y
That's how I've always done it.
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Peter TverdovBusiness Member
Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
9y
I have yet to buy a rental property without doing that. Less cash out of my pocket.
[email protected]732-289-3823
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