Home Buying in Riverdale>Question Details

Yvette Arcen…, Home Buyer in Fayetteville, GA

Can I finance my closing cost into my FHA loan?

Asked by Yvette Arceneaux, Fayetteville, GA Tue Mar 16, 2010

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Katherine B. Mitchell’s answer
This is a question you will have to pose to an FHA approved lender. 2010 FHA has made changes, some already in effect and some soon to take affect. Previously, you could finance all your closing costs and/or Seller could pay them up to 6%. Seller contributions now is going to 3.5% and financing the balance of your closing costs will depend on FHA stipulations, if they allow it at all. Go to http://www.fha.com and look up their approved lenders, call one or two of them and they should have the new ruling.
I have posted a link which shows FHA previously allowing of 100% financing of closing costs. Again, must you will need to speak with an FHA approved Lender.
0 votes Thank Flag Link Wed May 19, 2010
Call my lender Shane Welcher at Academy Mortgage 404-825-3657. He can guide you as to the new rule coming out on FHA and how to make the best decisions.


Mark Lackey
Atlanta Housing Source at
Solid Source Realty, Inc.
Associate Broker
0 votes Thank Flag Link Tue Mar 16, 2010
Hi Yvette,

FHA wants you to have at least 3.5% of your own money vested into the purchase of your home; however, you may be able to attain up to 6% of seller contribution towards your closing costs and escrows. Additionally, you may attain an $8000 tax credit if you are considered a first time home buyer, and $6500 if you are not, and fit into the criteria, which you can utilize towards your closing costs. To qualify, you must have an executed contract by Aril 30, 2010 and close by June 30, 2010. I am not sure if that credit will be extended. I hope this helps.

Best Regards,

Tony Field
0 votes Thank Flag Link Tue Mar 16, 2010
Hi Yvette,

On a refinance, you can finance the closing costs as long as you're within the loan-to-value guidelines.

On a purchase, the closing costs cannot be included in the loan amount, however, you may be able to cover some of the closing costs through rebate pricing and also they do allow the seller to contribute to closing costs.

Ask your loan officer about your options.

Best regards,
0 votes Thank Flag Link Tue Mar 16, 2010
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