Do These Closing Costs Seem Right??

[Jack Perfett]

Hello!

I am currently in the process of purchasing my first multiunit house hack in the Philadelphia area. I am using a 3.5% down FHA loan and have received a loan estimate on a property. The property is $425,000 and the loan estimate says my closing costs will be $22,922. Is this right or is this extremely high? When watching Brandon evaluate deals he's usually around $7500 in closing costs for this price range of a property.

Please let me know and all answers are appreciated.

[Jay Hinrichs]

Originally posted by @Faruk Al-Hassan:

I've done two FHA househacks. Closing costs are always going to be high because of the upfront MI premium which is unavoidable. That said looking at your closing disclosure you have some ohter costs that seem high. Your lenders title coverage is a little high, I wouldn't shop for it but its possible. What really sticks out is $4.2k in transfer taxes, what is that for?? Maybe my state is different but I haven't paid anything close to that and its your 3rd biggest expense.

 PA has a transfer tax  many times the sellers pay it..  and there is also a very big school tax on transfer looks like sellers paying that one.

lots of prepaids in this deal and the PMI is simply so you can house hack with such a low downpayment.. dont want PMI put more money down