Home purcheser buying a Fannie Mae house pays the sellers closing costs?

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I am required to sine a contract from Fannie Mae to pay their closing, what does this mean and how much could this be. I chose to finance usuing the USDA rural development loan program and am not sure if I can finance these costs into my loan. Is this a bad deal?

2 comments to Home purcheser buying a Fannie Mae house pays the sellers closing costs?

  • japark122675@yahoo.com  says:

    you can only roll closing cost if you already own the house. On purchases, all closing will be paid by buyer. The closing cost do not go to the seller. 4 parties split the fees. It shows on your Good Faith Estimate. those five parties are and in order from the most take to the least take: Government (taxes and recording of title fees), Lender/Broker (depending on how many points you are charged, it could be higher than government fees), Title company (lawyers fee, documentation search and preperation fees), and last is the appraiser.

  • thedude81321  says:

    Yeah… that’s weird. I’ve never heard of a buyer paying the seller’s closing costs before. If you want the house bad enough, I guess it’s probably worth it. I can’t give you a great estimate, but I would think you might pay similar to the buyer’s costs (tack on another 3% of the price). You should ask your mortgage broker if they might be able to break this down for you. These costs would not roll directly into your loan. If, on the other hand, the seller is just asking for a higher asking price, so that you are covering their fees, then it could go into the loan. The only problem there is that if the house doesn’t appraise high enough to accommodate the seller’s fees, you will not get the loan.

    So yes, basically you should talk to the people on your side about this (your real estate agent and your mortgage broker) and see what they have to say. They will have a much better idea.

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