Can Buyer Closing Costs be paid by the Seller?
It is common today for motivated sellers to pay up to 3.0 % for closing costs for either a FHA or Conventional Loan.
FHA allows up to 6 % for Closing costs and Conventional loans vary based on the down payment. For down payments less than or equal to 5 %, the maximum credit is 3.0 % A 10 % or more down payment allows up to 6.0 % and a down payment of 20 % or more will allow up to 9 %. Closing costs consist of Lender, escrow and reserves for property tax and home insurance (impounds).
FHA allows up to 6 % for Closing costs and Conventional loans vary based on the down payment. For down payments less than or equal to 5 %, the maximum credit is 3.0 % A 10 % or more down payment allows up to 6.0 % and a down payment of 20 % or more will allow up to 9 %. Closing costs consist of Lender, escrow and reserves for property tax and home insurance (impounds).


Comments