Who pays what closing costs on USDA Loans?

Closing Costs are handled the same way as any other loan.


Seller is allowed to pay all the closing costs. However, most lenders cap it at 6% of the purchase price.

A 2% funding fee applies but is allowed to be financed on top of the 100% loan.

No mortgage insurance.

Wonderful program. Have any other questions?

Greg is right on. Just a little FYI, you can actually finance into the loan some repairs to the home. There are some restrictions such as the repairs need to be done very shortly after closing (I believe within 15 days) as well as the type repairs. This is rare today.

You have 3 months to complete repairs. It sometimes can be longer depending on the repair and if the weather permits the repair within that time frame. The repairs are usually restricted to only those making the home adhere to the property standards of the program.