Seller paid closing costs

Many buyers (particularly first time buyers) are short, they need money for the deposit and closing costs. One way to overcome this lack is the money for the seller to pay part of closing costs. How much the seller has the right to contribute depends on the type of mortgage.

conventional loans

On a conventional loan, the seller can only pay the costs. These products do not include the pre-paid or products are paid in advance (for example, insurance or mortgageRisk insurance). The seller's contribution is the amount of withdrawal buyer is limited. If the buyer is 10 percent or more, the seller can contribute up to 6 percent. If the buyer is less than 10 percent, the seller may contribute is 3 percent.

VA Loans

On a VA loan, the seller may pay all closing costs (this is known as "VA-no-no" - the buyer pays no down payment and no closing costs). Sellers who agree to pay closing costs often exceedon the amount you pay.

FHA loans

On an FHA loan, the seller may pay all closing costs. However, the buyer must have at least 3 percent of investment in property - either as part of acquisition costs, a down payment or pre-paid products. The 3 percent can be from the buyers own funds or a family member a gift.

Ask the seller to pay all or part of closing costs

The seller is willing to help bridge the cost is often based on marketConditions and how the request is made to the seller. As your Realtor, I will help you make an offer that the purchase price and the cost of closure of request with the dynamic balances of the current market. For example, a seller's market we may increase the purchase price offered for requesting assistance for closing costs to compensate.

Remember - if the customer is fully or partially closing costs is the principle of funding isClosing Costs. This is because the seller is the contribution calculated usually by a higher purchase price. It is this higher purchase price that is financed with the mortgage loan.