Closing costs are typically 2-3% of the purchase price.  Amounts can vary from county to county.  In some counties it’s customary for sellers to pay certain costs, but in others buyers may need to pay for costs like escrow fees or owners title insurance.  

For most loan programs, sellers can provide a credit toward your closing costs. 

• Conventional loans allow up to 3% of the purchase price as a seller credit when putting 3-5% down. 
• FHA loans allow up to 6% of the purchase price. 
• VA allows 4% of the purchase price, in addition to paying other customary closing costs on the veteran’s behalf.  The 4% credit can even be used to pay down the veteran’s debt to help qualify for the loan. 
• USDA allows a seller credit of up to 6% of the loan amount (not the purchase price).  With USDA, if the home appraises higher than the purchase price, closing costs can also be financed.

To be eligible for 3% on a conventional loan, you either need to be a first time buyer, or be under the income limits to be eligible for an affordable housing program (Home Ready or Home Possible).  All other programs, including a 5% down conventional loan, do NOT require that you be a first time home buyer.   There may be limitations or restrictions if you do own another property, however, so please let us know if you’re planning to keep your current home, or if you own rental property. 

Each county has conventional loan limits, which means only loan amounts below that limit will be eligible.  FHA loans may have different loan limits from conventional loans in some counties.  

Please use our interest rate quote search to see different payment and loan amount options.  It will help you get a good idea of how much you’ll be comfortable paying each month.  Don’t forget about property taxes and insurance.  Those will be added to your monthly payment, as well as mortgage insurance if applicable to your loan scenario.