Rolling Closing Costs into FHA Loan

[Quandra Adams]

I've read in multiple places that is possible to roll the closing costs into an FHA loan (but can more money). I emailed my lender to ask what that cost might be and I was informed that it's not possible. Well, these were her specific words "The only thing that can be rolled in is FHA upfront mortgage insurance premium, which I have already done. I few of the renovation expenses on a 203K are used to calculate in the loan amount but that really doesn't change the cash out of pocket."

Has anyone here ever done this? Where is the disconnect?
 

[Christopher Phillips]

@Quandra Adams

This is called a seller concession. FHA has a limit up to 6% of seller concessions based on the sales price or the appraisal price, whichever is lower.

Seller concessions have to be approved by the owner because the property has to appraise at the higher value.

An example: $100,000 with 1% seller concessions. You would offer $101,000 for the property and state that it includes 1% seller concessions. The property would have to appraise at the $101,000.

The concessions can cover things like the prepaid taxes and other closing costs related items.

You also have to ask for the concessions while you're submitting your offer. The concession has to be on the contract.