Can I wrap the closing costs into the loan?

[Drew Bonner]

Hey all! I am in search of a 4-plex to use an FHA loan on and house hack it. My question is can I wrap the closing costs into the loan instead of having to dish out 8000-9000 for this out of pocket? Looking forward to hearing back from you guys!

[Chris Mason]

If you're getting a good deal, absolutely. 

- $500k home.

- Write offer for $510k, asking for a $10k seller credit.

- Rational seller will view it as a $500k offer.

- We said above that you're getting a good deal, so appraising at $510k shouldn't be an issue.

Appraiser must review contract to confirm that this isn't unusual for the area. It is normal here in the Bay Area, so generally not an issue.