HELP! Financing HUD Home..

[Jo Ann]

I located a 2002 Southern Energy 28x76 4 bedrooms 3 bath in excellent shape on 2.5 acres..I obtained a preapproval on financing for the property, selling at 47k.. Interest is 8.75 %, 103 percent loan...Credit Scores are good.. I am a bit confused about the HUD process and the banker really doesn't know much.. HUD will pay closing costs if it is included in the sealed bid, correct?

Loan would be paying a 1% origination fee $470, appraisal $300, credit reports 29.00, tax related service fee 90.00, app fee 75.00, flood certificaton fee 11.00, courier 35.00, processing 150.00, underwriting fee 200.00, document prep 190.00, title insurance 175.00, guarantee fee 1.00, recording 65.00, tax certificate 30.00, survey 500.00, pest inspection 90.00, septic survey 150.00

Does all of this sound reasonable? Will HUD pay these closing costs? I was told I will need to provide proof of 1years hazard insurance at closing..

PLEASE HELP!!! I'm new to it all..

[rmurray]

your rate seems too high..current mortgage rates for good score are about 6%..with some cash outlay...

When you make offer you should be sure to include all terms you think you want..Ask your real estate pro for advice...

[Jo Ann]

Scores are 676, 636 and 582.. Don't know why on the 582.. I have all things paid on time, plenty of accounts and the only late I had was 1 over 5 years ago.. This is through a local bank..Should I look elsewhere for financing

[rmurray]

I have seen many scores in the 500's with NO lates...most often these scores are showing some high balances on accounts....

Mort age lenders who use score will look at the middle score....You might want to shop around for other quotes from lenders...This is a small loan for most mortgage companies...


1% at this loan amount is about $ 13,000 over the life of the loan...Goos Luck...