Q: Can Closing Costs, Fees, etc. Be Paid with a USDA Rural Development Loan?
A: USDA Rural Development loans come with 100% financing. This means that no money down is required and closing costs can be either paid by the seller or financed into the loan.
In short, no-money-down means the homebuyer is typically not required to pay any out-of-pocket expense when the house closes. This includes:
It is important, however, to note that only the difference between the agreed upon contract price and the appraised value of the home can be used to finance the closing costs. In essence this means the USDA Home loan will not cover more than the appraised value of the property.