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1. Is the cost of the home + the renovation amount used to determine your closing costs? Or is it just the cost of the home?
2. Does the Up-Front MIP usually get rolled into the loan, or is that a truly up-front payment?
Thank you for any guidance.
FHA loans are one of the majoy reasons caused the housing bubble
they are typically 10% of the amount of the loan, at least that's what i read when looking into them. add to that you need to use their approved contractors and you're really paying out of your nose.
We confirmed that we are able to use our own contractor and architect, that hasn't been an issue.
We are also putting down 25% as a downpayment. We are going the FHA route since we're just above the conforming loan limit.
Thanks for the responses.
The fees on a 203k loan are typically only about .5% higher than a regular FHA loan. Most of the costs can be covered in lender credits, except for the up front mortgage insurance which can be financed. Please give me a call or shoot me an email if you are interested in dicussing further.
270 Madison Ave
NY, NY 10016
Several of your closing fees are based on the TOTAL FHA 203k Loan Amount. These fees in New York would be the NYS Mortgage Tax (a percentage of the TOTAL Loan), Title Insurance (rates set by New York State and based on TOTAL Loan), and POINTS you are paying to your Lender (a percentage of the TOTAL Loan).
YES your FHA UFMIP (UpFront Mortgage Insurance Premium) is financed on top of your loan. The UFMIP will be disclosed to you on your Good Faith Estimate (GFE) as a closing cost and will also get calculated into your Annual Percentage Rate (APR) on your Truth In Lending Statement (TIL). FHA Loans typically have higher APR's due to the UFMIP than Conventional loans with the same interest rate.
BTW: You can pay the UFMIP yourself along with your other closing costs. Rarely ever does an FHA Borrower do this.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services