Question about seemingly high FHA Cash to Close Costs

Upstate New York, New York
Upstate New York Real Estate Forum
9yFollow

Question about seemingly high FHA Cash to Close Costs

Account Closed
Ithaca, NY · Member since 2016 · 8 posts · 1 vote

I am looking to get started by purchasing a duplex in upstate New York while I attend graduate school, specifically the Finger Lakes area. I am in the process of talking to a local bank about using a FHA loan to do so. However the bank claims I will need ~$18,000 for all my cash to close costs for a ~160k property. To me this seems a little high, I was expecting around $10,000 - $12,000. I am just curious what anyone's opinion is, is that high? Or is this a reasonable amount?

Any response would be greatly appreciated I am very excited to get started but want to make sure I am understanding the financing.

Thanks!

0Reply
17 views

1 Reply

Jump to latestLatest
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Account Closed,

    You'll need your down payment plus closing costs. So, it will depend on the purchase price, plus any costs related to closing.

    If your FHA down payment is 3.5% on $160K, then you're looking at $5,600 plus closing costs, plus property tax prorates, plus ... Get it?

    Your attorney (you ARE closing using an attorney, right???!!!) will be a good resource to help you understand the closing forms.

    My $0.02 ...

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free