Is it true that closing costs cannot be combined into an FHA loan?

My boyfriend and I are first time home buyers and are going to be purchasing a home with an FHA loan. Our mortgage broker said that the closing costs cannot be rolled into the loan because it’s an FHA. I couldn’t find anything that said that on the FHA website. I was hoping someone might have a small insight into what he’s talking about.

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This entry was posted on Friday, September 4th, 2009 at 4:41 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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One Response to “Is it true that closing costs cannot be combined into an FHA loan?”

Quicken Loans says:

September 4, 2009 at 4:41 pm

Closing costs on an FHA loan cannot be rolled into the loan, but the seller can pay seller concessions up to 6% of the value of the mortgage, which should cover most closing costs. That is something that is negotiated when you make your offer.

Keep in mind, the minimum down payment of 3.5% cannot be a seller concession and you’ll have to come with that money (in some cases it can be a gift from a relative – work with a trusted mortgage professional to get all the details).

Excellent luck and let me know if you have any more questions about FHA loans.

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