Not exact matches
The USDA loan will actually lend up to 103 % of the home's appraised value and even allow the buyer to include closing
costs in the
actual loan (
appraisal permitting).
The rule does not prohibit a loan originator from decreasing its compensation to defray the
cost, in whole or part, of an unforeseen increase in an
actual settlement
cost (like an
appraisal fee) over an estimated settlement
cost disclosed to the consumer on the Good Faith Estimate.
One advantage of capitalization rate valuation is that it is separate from a «market - comparables» approach to an
appraisal (which compares 3 valuations: what other similar properties have sold for based on a comparison of physical, location and economic characteristics,
actual replacement
cost to re-build the structure in addition to the
cost of the land and capitalization rates).
Because fees paid for
appraisals and title - related services constitute a large percentage of total settlement service fees paid by consumers at consummation, permitting these fees to vary by ten percent may significantly increase the
actual cost of obtaining a mortgage.