Yesterday I got this brilliant Idea that I would actually raise there offer if they paid all of the closing cost (I know i’m pretty stupid when it comes to this) and the realtor told me on FHA loans there is only a certain percent that the seller could help pay. Do you know what that percent is? My closing cost would be around $3,000 down plus all kinds of insurance and fees making the total around $7,000.00.
On an FHA home loan is there a certain amount that the seller is allowed to pay in closing costs?
12
Mar
majhomes
March 12, 2010 at 9:40 pm
from what I understand the new law indicates 3.5% down from buyers funds and the seller can pay up to 6.5% in buyers closing costs. But please verify this with your lender as he/she would know best
Jay S
March 12, 2010 at 10:06 pm
Yes the seller can pay up to 6% of the sales price to cover your closing costs so if your purchase price is $160,000.00 then you can get up to $9,900.00.
Liz Lam
March 12, 2010 at 10:08 pm
I actually just bought a house at the end of October and we’re in in now. We had an FHA loan, we put 3% down and the seller actually paid all the closing costs and we got back a check for about 800 handed to us at the closing because they reimbursed us for our home insurance. I think they had givien us a 2500 dollar credit toward closing and we had about 5grand knocked off our offer after our inspection, we worked all this into the deal after the inspection, so I hope you got an inspection, and then you can bargain the closing costs and everything into the deal after. They didnt tell us anything about the seller only be allowed to cover a certain cost, that was never mentioned at all, I think it all just depens on the home inspection and what you bargain in
Good luck and congrats on the new house!
Real Estate Guy
March 12, 2010 at 10:39 pm
100% sure.
You need 3% down payment (on 1/1/09, this increases to 3.5%).
The seller can pay up to 6% of the sales price. However, they can’t pay more then your actual closing costs.