By Sean Stephens
Tags:

How much can a seller can pay in closing costs?

What is the most a seller can contribute towards closing costs on USDA, VA, FHA, and Conventional mortgages?

Due to the variety of questions we receive on our subject today, I feel it is important to give you the facts in order to help keep your all important financing headed to the closing table!Tampa FL USDA and VA Approved Lender

Obviously, this is all contingent on what is able to be negotiated, but in today’s video tip I will explain what is the most a seller can contribute towards closing costs on each loan program.

But, before we get started, don’t forget to download our USDA Blueprint for Success with the link below.  This free guide is designed to help walk you through the USDA qualifying process step-by-step and is ideal for both homebuyers and Realtors alike.

How much can a seller pay in closing costs?

Commonly referred to as seller concessions, this is the amount that can be negotiated within the sales contract to help the buyer(s) with customary out of pocket expenses such as closing costs or pre-paid items, otherwise known as settlement charges.

CONVENTIONAL LOANS
Tampa FL USDA Approved Lender

  • Primary Residences and 2nd homes allow for the following seller concessions:
    • 3% of the sales price with less than 10% down payment
    • For down payments of 10 or greater permit up to 6% of the sales price
  • Investment properties are capped at 2% of the sales price regardless of down payment amount.

Tampa FL USDA Approved Lender

FHA

Currently, FHA will allow up to 6% of the sales price towards seller concessions regardless of down payment.

VA

Seller may pay all reasonable and customary closing costs and discount points without limit.Tampa FL VA Approved Lender

Additionally, a seller may pay up to 4% of the purchase price towards any combination of the following:

  • Pre-paid expenses
  • Funding fee
  • Buy down fees
  • Payoff of borrower liabilities, such as collections, judgments or other credit balances

Tampa FL USDA Approved Lender

USDA

  • Up to 6% of the sales price permitted

Properly structuring the sales contract upfront, can help save time and potentially strengthen the offer.

If you have any financing questions which pertain to the loan program for the buyer and how it relates to the sales contract, please contact my office so we can help.

Remember, not all lenders have experience with processing and closing USDA loans.  I see this each and every day on the 2nd opinions that come across my desk.

As an approved USDA lender, we are known for our program expertise and have specific systems in place to process USDA loans from pre-qualification to closing.

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions.

CLICK THE IMAGE BELOW TO DOWNLOAD YOUR USDA BLUEPRINT FOR SUCCESS
Tampa FL USDA Approved Lender

Qualifying for a home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the loan process, it is a match that can open the door to home ownership.

For more immediate scenarios - click here to apply online for a mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Whether it be USDA, FHA, Conventional or VA loans, just call or email to discuss your scenario and let us show you the "Metroplex" difference!

Questions? Contact Us Here!
Toll Free: (800) 806 - 9836 Ext. 280

We are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

 

Have Questions or Need Help? Contact Us Today - 800-806-9836

Home | About Us | Loan Types | Apply Online | Contact Us | Legal & Privacy | Site Map | Accessibility Statement

© 2018 Metroplex Mortgage Services, All Rights Reserved

We lend in the following states: Alabama, Florida, Tennessee & Texas. Any loan program may require sufficient equity and certain conditions may apply.

As a VA Approved lender, we are not endorsed or affiliated with the Department of Veteran Affairs. As a USDA Approved lender, we are not endorsed or affiliated by the U.S. Department of Agriculture.

VISUALLY or HEARING IMPAIRED?CLICK HERE for 42 USC 3606 DISCLOSURE