When buying a home, many buyers want to know: Can I roll closing costs, repairs, or even extras like furniture into my mortgage? The answer depends on what you’re trying to include.
For purchases, the only way to “roll in” costs is typically through seller concessions—where the seller agrees to cover certain expenses as part of the deal. However, there are limits on what sellers can pay for and what can be included in the loan itself.
If you’re buying a home in Dallas or anywhere in Texas, here’s what you can—and can’t—roll into your mortgage.
What Can Be Rolled Into a Home Loan?
For home purchases, the most common way to roll costs into your loan is through seller concessions. This means asking the seller to cover certain expenses in exchange for a higher purchase price.
For example:
- You want to buy a house for $500,000
- You ask the seller to cover $5,000 in closing costs
- You offer $505,000 instead of $500,000
- The seller agrees because they still walk away with the same net amount
This is a common strategy, but it only works if the home appraises for the higher price. If the appraisal comes in at $500,000 instead of $505,000, the lender will not approve the higher loan amount.
Seller Concessions Can Cover:
- Closing costs (loan origination fees, title fees, etc.)
- Prepaid expenses (homeowners insurance, property taxes, escrow setup)
- Home warranty costs
- HOA dues (if applicable)
These are expenses that the seller can pay for, but there are limits based on loan type and down payment.
For example, FHA and conventional loans cap seller contributions at 3% to 6% of the home’s price, depending on the loan terms.
What Cannot Be Rolled Into a Home Loan?
While closing costs and prepaids can be covered with seller concessions, there are some things you cannot roll into your loan, even if the seller agrees.
What Sellers Cannot Cover or Roll Into Your Mortgage:
- Your down payment – The seller cannot provide any money toward your required down payment. That must come from your own funds or a gift from an approved source (such as family).
- Furniture and personal property – Items like appliances, furniture, or decor cannot be included in the mortgage loan.
- Major repairs or upgrades – If a home needs HVAC work, roof repairs, or new plumbing, the seller can fix these before closing, but you can’t finance them as part of the home loan unless using a special renovation loan.
- Luxury items like boats or jet skis – If you’re buying a lake house and the seller wants to include a boat or jet ski in the deal, it cannot be part of the home loan.
Lenders only finance real estate, meaning anything that isn’t permanently attached to the home cannot be included in the loan.
Workarounds: Can You Pay More for Extras?
Some buyers ask, “Can I just increase the home price to include extras like furniture or a boat?”
Technically, you can offer a higher price—but the home must appraise for that amount.
For example, let’s say a lake house is listed at $500,000, and it comes with:
- A boat worth $20,000
- Furniture worth $10,000
If you offer $530,000 to include those items, the home must appraise for $530,000 or higher for the loan to go through. If similar homes in the area have only sold for $500,000, the lender won’t approve the extra amount.
This is why most buyers and sellers negotiate these extras outside of the mortgage. If you want furniture or a boat included, you may need to pay for those separately instead of rolling them into the home loan.
What About New Construction and Model Homes?
In some cases, homebuilders selling new construction may include furniture or upgraded features in model homes. These homes are usually upgraded and staged with high-end finishes, so they may already be priced higher.
If the home appraises for the listed price, the included furniture may be considered part of the sale. However, this is handled on a case-by-case basis, and lenders will still only finance the home itself—not any personal property.
If you’re buying a model home with furniture included, make sure:
- The sale price reflects the home’s value
- The appraisal supports the purchase price
- You’re not overpaying for the extras
What About Refinances?
For refinances, the rules are a little different. Since you already own the home, you may be able to roll in certain costs, including:
- Closing costs (loan fees, title fees, etc.)
- Property taxes and insurance (if required for escrow)
- Home improvements (if using a cash-out refinance or renovation loan)
Unlike purchases, refinances do not involve seller concessions, so all costs must be covered by the loan amount or out-of-pocket funds.
If you’re refinancing in Texas and want to roll in certain costs, speak with a lender to see what options are available.
Final Thoughts on What Can Be Rolled Into a Home Loan
Rolling costs into a mortgage is possible for some expenses, but it depends on the loan type, seller concessions, and appraisal value.
To summarize:
- Seller concessions can cover closing costs, prepaids, and HOA dues
- Your down payment, furniture, and personal property cannot be included
- Repairs can be negotiated, but not always rolled into the loan
- Homes must appraise for the full loan amount if you increase the price
If you’re buying a home in Dallas, Fort Worth, Houston, Austin, or anywhere in Texas and need guidance on structuring your mortgage, reach out to the Mortgage Mark team. We’ll help you understand what’s possible and how to maximize your home financing options.
Have questions or ready to get started?
Mark Pfeiffer
Regional Sales Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com
Mortgage Mark
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