Can you roll closing costs into a mortgage?

Can You Roll Closing Costs into a Mortgage?

Can You Roll Closing Costs into a Mortgage?

At Dovetail Mortgage, a mortgage broker in Braintree, MA, one of the most common questions we get asked from clients is this: “Can you roll closing costs in a mortgage?” And the reason for that is because somewhere along the way a friend, family member, or colleague mentioned that they were able to include their closing costs in their mortgage loan, but this is not entirely accurate.

What they really meant to say was that they were able to obtain a lender credit or a seller credit, which is when the lender will pay the closing costs in exchange for a higher interest rate and the seller agrees to pay the costs because they sold the home for more than the market value.

Here are some of the ways a person can roll closing costs in a mortgage 

Fannie May (Conventional Loan):

The only way to avoid paying your closing costs out of pocket is to include a seller credit as a condition of your offer or inquire about a lender credit with your loan officer.

Freddie Mac (Conventional Loan):

The only way to avoid paying your closing costs out of pocket is to include a seller credit as a condition of your offer or inquire about a lender credit with your loan officer.

FHA Loan:

The only way to avoid paying your closing costs out of pocket is to include a seller credit as a condition of your offer or inquire about a lender credit with your loan officer.

USDA Loan:

Only if the house appraises for more than the purchase price can you include the closing costs in your loan.

VA Loan:

The only way to avoid paying your closing costs out of pocket is to include a seller credit as a condition of your offer or inquire about a lender credit with your loan officer.

About Dovetail Mortgage 

Applying for a loan all the way through the closing process should not be a daunting task. That is why we started Dovetail Mortgage! We believe that the mortgage application process should be seamless and simple. With a combined 50 years of experience as brokers and lenders, our team is here to assist you. To learn more about our company and how we provide harmony and simplicity please contact us today! 

Leave a Reply

Your email address will not be published. Required fields are marked *

Apply Now


First Name

Last Name

Cell Phone

Email

Fields marked * are required

Find Out How

Want to Learn More?

Our team of dedicated loan experts can answer any questions you may have regarding residential financing, whether you’re a first time home buyer, looking to refinance, or shopping for a second home. We are here to assist you.


First Name

Last Name

Cell Phone

Email

Fields marked * are required