can a first time buyer roll up the closing costs into their mortgage if there is equity in the home they are purchasing?

Regardless of how much equity there is in the home, when purchasing, you are limited by the lenders Loan to Value requirements.. and the lender always uses the LOWER of the sale price or appraised value.. so if your applying for a conventional 5% down payment loan, then the LTV is 95%.. you will not be able to finance more than the 95%, you will have to pay for costs.. However, it's not really hard to get the costs covered.. you can ask the seller to contribute to your costs or you can select a slightly higher interest rate and the lender will give you a credit to help pay the costs.. But by your questions, its very clear you have yet to talk to a loan officer or real estate agent.. This is one of the first things they go over with you.. Do yourself a favor and contact a local mortgage broker and apply with them.. once they look at your complete profile, they will be able to advise you properly.. and show you how to get the costs paid.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Only possible on a USDA loan and that is only possible if the appraised value comes in higher than the agreed upon purchase price. Otherwise the answer is no. You may also have the options to raise your interest rate and receive a credit that can be applied towards your closing costs. The seller may also contribute towards your closing costs.

William Acres points out the difficulty in answering your question accurately as more details are needed to answer to your specific situation. It will be most helpful to you and the mortgage consultant evaluating your individual options when you provide more details, and thus I hope you inquire with one or maybe even two to qualify and get input from. If you are buying a home from a relative who is going to grant you equity certainly it is possible to count gifted equity in the purchase of the home. The mortgage consultant in fully assessing your individual qualification should determine how best you could avoid actually having to pay closing costs in a purchase loan..

Hello:There are programs that allows you to roll in your closing costs into your mortgage. Please email or call me if you would like more information and if you would like to be pre-qualified for a mortage. Best regards, Patty Harrison 630-854-3459 www.smartmortgageinc.com .