Can I have the seller pay my closing costs?
Post date: Mar 22, 2012 1:45:59 AM
VA & FHA Closing Costs and Allowable Seller Paid
FHA closing costs are a significant reason for choosing an FHA home loan. Most traditional mortgages allow only a maximum of 3% seller contribution towards closings costs. With an FHA mortgage, the rules are that the seller is allowed to pay up to 6% of the sales price towards the buyer’s closings costs. This is usually more than enough to cover all of your FHA closing costs and even include discount points if you wish to buy down your mortgage interest rate. This, of course, means that you will have more money remaining after the close on your new home.
On VA home loans you have the ability of getting 4% seller concession & having the seller pay all the rest of your closing costs.
Having the seller pay for some or all of your FHA or VA closing costs can be a part of your negotiation when buying a home. Make sure to bring this up with your real estate agent and attorney at the very beginning of the home buying process. Your BankerBroker could come up with a tactic to save you thousands on your closing costs.
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