Closing costs?

[Blake Williams]

I found a great deal on a duplex near me, I want to house hack it. I was thinking of putting 5% down and asking for 3% sellers concessions but I don't know if that covers all of the closing costs. Does anyone know how I can get the closing costs wrapped into the mortgage so I have as little out of pocket as possible at closing and then refinance in the future? Any other ideas on how to do this?

[Mike Cumbie]

Hi @Don Young,

You can if the house appraises for that amount. If it doesn't then the bank won't lend more than the value.

Random numbers:

House appraises for 100K

User is asking for 94K

You could add 6% and make it work.

If user is asking for 100K it won't work because you are trying to borrow 106K from the bank on an asset that is worth 100K.

There is more involved (Type of mortgage and amount down allowed and all sorts of stuff, but that is the rough idea)

Hope it helps