I’m purchasing a multi family at a purchase price of $314,000 with $9k back for closing costs, prepaids, escrow. I’m Using FHA MA Housing First Time Buyer Program w/3.5% down payment assistance program (the 3.5% down payment is financed at 2% interest for 15 years).
I’m seeking opinions on whether this loan estimate is fair and which fees are negotiable. Is the origination cost the lenders “Commission”? What would be a fair concession amount to ask for from the lender for, if any?
See pics attached.
Thanks in advance!
It would be great if a mortgage loan officer would chime in. I’m a retired real estate broker and I see very little that is negotiable on this estimate. The best I can suggest is on page 2 you have some processing fees that might be negotiable, but they are not at all excessive as part of your loan origination fee.
The title settlement fee is very reasonable. In my area the appraisal estimate would be a bit high and I’ve never run into an appraisal admin fee so you might ask if the admin fee can be waived. You must have an appraisal; FHA has approved appraisers for your area, unlike conventional loans where the lender has a bit more control over who does the appraisal.
In my area the estimate for a property land survey is quite low but perhaps there is an existing survey that only needs an update which may explain why it seems low to me.
I would shop around for your homeowner’s insurance making sure you are getting quotes on multi-family. That premium seems a bit low for a multi-family unit but again, I’m not familiar with your location. Is this a duplex?
All in all I can’t find too many issues with this estimate for FHA financing. These numbers, however, are just preliminary estimates and some of them can change at the time you finally close on the loan. You should request the title company provide your final HUD closing statement before you attend the closing. I think the current requirement requires them to have it available at least 1 business day before closing.