What are the typical closing costs on a USDA loan?

No such thing as "typical"... there are certain costs that are a percentage of the loan amount, and there are other costs that are fixed.. For example.. Underwriting might be $900.. it doesn't matter if you purchase a $300k home or a $40k home.. Because the cost is fixed at $900... Also, the lender could charge you 3 points origination, which is a percentage of your loan.. if you buy a $300K home, that's $9000 if you buy a $40K home that's $1200.. so this fee is variable.. Your title insurance costs are based on the value of the home, not the sale price, not how much you borrowed, but the appraised value... Keep in mind that this fee's worksheet is broken down into several sections.. Lender fees, Title Fees, escrow fees, 3rd party fees.. etc.. MY point is that your lender can only control the fee's that he is charging under the "Lender Fee's Section".. all the other fees are listed on the form, but he has nothing to do with them... Best thing you can do is ask your lender for an "Initial Fee's Worksheet", and have him explain his costs.. Then sit down with your real estate agent and have her look them over.. If she done any volume at all, she should be able to fly through the IFW and explain everything.. If you're not comfortable with your lender and his fees, than feel free to contact me... 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. 480-287-5714 WilliamAcres.com

I will just add to some other comments here... Never, EVER, just randomly select a lender to work with simply based on a response. You must speak with them directly and also request client referrals that are credible. Do not allow your credit report to be run unless you have fully interviewed a loan officer. It doesn't matter whether they are "authorized" to lend in all 50 states or Your State. It's really a matter of whether they can get the loan done for you in a timely fashion and with expertise in their back pocket. Always use caution...

You will be charged an upfront 2% mortgage insurance premium which can be financed into the loan. Other than that you will have the same closing costs as you would on a conventional loan.

Please find the direct link to the USDA Eligibility Website as you first need to determine the following: 1) if the property qualifies (enter the address into the search field to see if it is noted as Eligible and if not, you can't use USDA for financing on that particular property & 2) if your household income qualifies. Once you have the property and income confirmed for Eligibility, you will be better prepared to decide who you want to work with to help you obtain a loan. The mortgage business is very competitive now and thus the closing costs from one broker or lender to another may be very close. You want to decide who you want to work with and that relationship should be worth more than saving a few dollars on closing costs or .125% on an interest rate. You will know for sure once you start the process as to the immediate value someone should provide! If you would like to discuss your financing situation directly with me, I would be happy to work with you. I can originate loans in all 50 States and am ready to help you if you need assistance! Enjoy the evening!

Follow up: Here is the Link for your review: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1

Hello, I would suggest that you work with a local lender in Arizona. Your best bet is to shop out each lender and request a good faith estimate of costs/fees. More than likely the estimates will be similar as we all use similar sources to place our loans. Be sure that you ask if the rate is a lockable rate to avoid any bait and switch tactics. Please feel free to contact me if I may be of assistance. Thank you, Sandy

I might add that if you are purchasing a home the seller is probably paying for them so it's not as important as a refinance. If you are refinancing then you may, or may not, have an appraisal, you will Always have title fees, and may or may not have origination, underwriting, processing, credit report fees.

The costs on a USDA loan are the same as any other mortgage loan. The question is how do you pay them and any options. You can increase costs by buying discount points, you can roll the costs into a slightly higher rate, or maybe have the seller pay them. Talk to a local non-bank loan officer for your options. We do USDA loans all the time where the buyer ends up needing close to ZERO out of pocket to buy a home! In MN or WI, contact www.StPaul-Mortgage.com for more information.