How much do you pay for closing costs?

[Jessica Force]

Looking to make my first home purchase. The plan is to house hack a multi family in Texas. We have $36K to start investing with. I'd like to get into our multifamily primary for maximum $10K including closing costs and then start BRRRRing other investment prooerties with remaining $26K. Just spoke with a lender who offers 3% loans on primary. But closing costs were another $9K. These costs include 1 yr insurance plus 3 months taxes

taxes, loan fees, title fees, etc. The bulk was insurance and taxes (approx $5K) Seems high to me and I'm wondering what ya'll pay for closing costs.

[Jim Cummings]

@Jessica Force. I surmise from your first post, this will be an owner occupied situation for you! 

If so, you should be able to utilize an FHA Loan, and the total out-of-pocket costs should be in the range of 7.50% - 8.00% of the Sales (Purchase) Price of the property. Typically, Lenders will allow a Seller to pay 3.50% of the Buyer Closing Costs for an FHA Loan. If Seller is unwilling to take the "Hickey" or reduction in price, you may be able to add the Closing Costs to the price and have Seller pay them in that scenario.

Examples of how this might look on a property priced at $100,000 are:  

1. $100,000 Purchase Price to include $3,500 of Seller paid Closing Costs. 

Or if Seller unwilling to negotiate the Closing Costs. 

2. $103,500 Purchase Price to include $3,500 of Seller Paid Closing Costs.