Forgotten Your Password?

Need to Register?

Question Icon

Can a seller or realtor credit back to a buyer any money for a FHA home purchase?

On a FHA loan can the seller and/or the realtor offer any monetary concessions or credits back to the buyer/borrower to helpt the buyer with down payment or closings costs associated with purchasing a home? If so, what is the maximum percent that can be credited back to the buyer/borrower? by sean2109 from Orlando, Florida. Jan 26th 2013 Reply


Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

Yes the Seller can credit back up to 6% of the purchase price. It is very common for a Seller to do 3% to pay for your closing costs. Let me know if I can help further. P: 888-320-7888 - Ken@MortgagesforAmerica.org We are a non-profit which enables us to keep our rates and fees low. We can issue pre-approvals in less than an hour.

Jan 26th 2013
0
0
Brian Allen (ballen)
#43 ranked lender in Maryland - 193 contributions

Seller can contribute up to 6% of the sales price to cover closing costs, prepaids, escrow, and all of the Up front Mortgage Insurance premium contribution can not go toward your down payment requirement (3.5% of the price) only gifts or grants from qualified housing resources can assist with the down payment amount.

Jan 26th 2013
0
0
Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

Good Afternoon Sean! The limit for any sales concessions is 6%, which can come from the seller or agent, as long as it is properly disclosed. This means that the terms should be noted in the offer to purchase and/or a sales agreement. I'm happy to help you with any other questions you may have. Have a great day!

Jan 26th 2013
1
1
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

Yes you can receive up to a 6% concession. It will need to be properly disclosed in the contract. You should discuss it with your realtor prior to making an offer as the seller would have to agree to it. If you'd like to discuss your situation we'd be happy to do a free consultation. 754-444-9705 ask for Benny or Michelle and we can go over all your options as well as check into any down payment assistance programs.

Jan 26th 2013
0
0
Barclay Butler (Barclay)
#83 ranked lender in Illinois - 76 contributions

Yes a seller or realtor can contribute up to 6% of the sales price to cover closing costs, prepaids (tax and insurance escrow), and all of the Up front Mortgage Insurance premium. None of the seller contribution can go toward your down payment. You only need to show you have the min. required investment (3.5% of the price). When you actually go to closing most likely you will bring less than that 3.5% because of seller concession and tax proration. Gifts or grants from qualified housing resources can assist with the down payment amount.

Jan 26th 2013
0
0
Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions

They can give you credits that can be used for prepaids and closing costs, but they it can't be applied to your down payment.

Jan 26th 2013
0
0
Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

Good Afternoon Sean! I am the number 1 lender in Florida as voted on by this SITE. I live and work in the Tampa Bay Area. The limit for any sales concessions is 6%, which can come from the seller or agent, as long as it is properly disclosed. This means that the terms should be noted in the offer to purchase and/or a sales agreement. I'm happy to help you with any other questions you may have. Also - Because we are the number 1 lender in Florida, In Jan, Feb and March of this year we are offering $1850.00 cash back paid to you at the closing table to be used as you see fit. Call me for details -- My personal cell is 800 813 3291 -- No tricks, No Obligations -- My name is Andrew Alfonso

Jan 26th 2013
0
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,669 contributions

Watch terms... NO ONE CAN HELP YOU WITH DOWN PAYMENT in that way. You always need your own down payment. Closing costs on the other hand can, and usually are, rolled into the transaction by what is known as "seller paid closing costs". The maximum is 6%. Sit down with a local non-bank lender - give them a full application, and let them help you.

Jan 27th 2013
0
0
Subscribe to our news feed.