Entering your costs
Enter the price and pick the program. The down payment fills in at the program minimum, and the FHA 100% financing toggle drops it to $0. Enter your closing costs and prepaids as one estimate. If you don't have a quote yet, 3% to 4% of the price is a workable starting figure in Florida.
Add the seller credit you plan to ask for. The calculator holds it to the program's cap and shows you the cap in dollars. Add any gift from family and the earnest money you've already put down.
The formula and what goes into it
Cash to close = down payment + closing costs + prepaids − seller credit − gifts − earnest money deposit
What goes into closing costs and prepaids
Closing costs are one-time fees: lender and title charges, the appraisal, recording, and two Florida taxes on the loan. Florida charges documentary stamp tax on the note at 35 cents per $100 borrowed and intangible tax on the mortgage at 0.2% of the loan. On a $294,566 FHA loan those two come to about $1,031 and $589.
Prepaids are the start of your ongoing costs: the first year of homeowners insurance, a few months of taxes and insurance held in escrow, and interest from closing day to the end of the month.
Financed fees aren't cash. FHA's 1.75% upfront mortgage insurance, VA's funding fee and USDA's 1% guarantee fee all go into the loan.
Seller credit caps
| Program | Most a seller can pay |
|---|---|
| FHA | 6% of the price |
| VA | 4% in concessions, plus normal closing costs |
| Conventional, under 10% down | 3% |
| Conventional, 10% up to 25% down | 6% |
| Conventional, 25% or more down | 9% |
| USDA | 6% of the price |
A credit can only cover real closing costs and prepaids. It can't go toward your down payment.
A $300,000 FHA purchase
A buyer is under contract at $300,000 in Broward with FHA. Closing costs and prepaids come to $10,200. The seller agreed to a 3% credit, $9,000, which is well under FHA's $18,000 cap.
| Line | Standard FHA | FHA 100% financing |
|---|---|---|
| Down payment | $10,500 | $0 |
| Closing costs and prepaids | $10,200 | $10,200 |
| Seller credit | −$9,000 | −$9,000 |
| Cash needed | $11,700 | $1,200 |
On standard FHA, a $5,000 gift from a parent brings the $11,700 down to $6,700. With FHA 100% financing, a down payment assistance second covers the $10,500, and the buyer needs $1,200. If the buyer's $1,500 earnest money deposit is already in escrow, it's credited at closing and covers that $1,200 in full.
Push the seller credit to $10,200 (3.4% of the price, still under 6%) and the buyer on FHA 100% financing needs $0 beyond the deposit.
Getting the seller credit right
Ask for the seller credit in the offer. It's far easier to write it into the contract than to add it later. If the cash still doesn't line up, check the FHA 100% financing guide and line up a gift letter early. To be sure the payment works with a financed down payment, run the price through the price check or the mortgage payment calculator.
AAA Capital Funding can give you a written estimate of real closing costs before you sign a contract. Call 888-601-8344 and we'll build your cash to close with you, line by line.