New York

[KEVIN88GT]

Scenario:

This would be a Primary residence

Purchase price 500k (10% down) + closing costs

 Need to know the following. 

- can closing costs be rolled into the loan?  

[Deborah_Tripp]

Some loans allow you to do this, as long as the loan to value ratio stays within the established limits for your loan. Another option is to make a purchase offer and ask that the seller pays closing costs, which accomplishes the same thing. But again the loan to value ratio will still be the limiting factor.

[dawnsul]

A great option in this case would be to ask for a seller's concession..this would allow you to finance the costs but the house would have to appraise for the purchase price with the seller's concession included (for example $515,000 purchase price with a 15,000 seller's concession would leave the seller with $500,000) but the house has to appraise for $515,000 for the bank to allow this. 

Another option woud be taking a slightly higher interest rate which would result in a lender credit back to you to use toward closing costs.  This is along the same line of the above but instead of financing more $, you are financing the costs in the interest rate.  If you were to stay in the house long-term, you are better off with the seller's concession and the lower rate if this is an option. 

[mortgage_lady]

yes. that is called a sellers concession.  the costs can be added to the loan as long as the appraisal value on the house reaches the total loan amount on the house.