does usda loan cover the closing costs?

Each loan is different. Contact the USDA and see if their loan program will allow you to cover closing costs. I know of other government programs in Pennsylvania which offer funding to help cover closing costs and even home improvements after the loan closes.

Reasonable closing costs and escrows (tax and insurance) may be financed when there is equity above the contract price up to 100% of the appraised value. In addition, the RD funding fee of 2% can be financed on top of that 100% bringing maximum loan to value of 102%.

Or, just negotiate for the seller to pay closing costs (or ask the lender to help, the reate will be slightly higher)

NO... USDA charges an upfront fee of 2% which can be financed into the loan. You will be responsible to pay your own costs.. but this can be done in several ways, and had you already talked to a lender or real estate agent, they should have gone over this with you.. Typically, you can ask the seller for a credit towards closing costs.. you can also ask the lender to pay your costs.. he will raise the interest rate a bit to accomplish this, but it can be done.. your real estate agent(s), from both sides of the transaction can also contribute. You can use gifted funds from a relative, or it's possible there is a Down Payment Assistance program in your area that might contribute.. or there can be any combination of these... I recommend you start by contacting a local mortgage broker and apply with them... Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com