Tag FHA seller paid closing costs

Tag FHA seller paid closing costs

Allowed Seller Contribution Toward Closing Costs on Delaware Purchase Transactions

John Thomas December 26, 2012 Tags: , , , , , ,
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How much can the Sellers contribute toward Buyers closing costs and pre-paid items?

John R. Thomas with Primary Residential Mortgage in Newark, Delaware will answer how much the seller can pay toward closing costs and pre-paid items based on the loan program being used.  If you have questions or would like to apply for a mortgage loan please call 302-703-0727 or you can APPLY ONLINE.

When a Buyer makes an offer to purchase a property, they can negotiate for the sellers to pay money toward closing costs and pre-paid items as long as it is written into the sales agreement.  On the Delaware Real Estate Sales Agreement, this is typically written into section 32 of the sales contract. A seller is allowed to pay money towards closing costs, prepaid items, and reserves.  The seller cannot, however, contribute toward the down payment. Keep Reading...

FHA Wants to lower Allowable Seller Paid Closing Costs from 6% to 3%

John Thomas February 25, 2012 Tags: , ,

HUD wants to lower allowable seller paid closing costs from 6% to 3% on ALL FHA loans. Only a 30-day window to comment so URGENT that you take action and make comments, see links below.

HUD/FHA Proposed to lower seller paid closing costs from 6% to 3%.

I highly encouraged everyone to take action IMMEDIATELY to submit your comments to the FHA regarding the reduction of the seller concessions to a maximum of 3% or $6,000 whichever is greater.

Please read the notice below to see HUD’s points regarding why they wish to reduce the maximum amount of seller concessions. Some good arguments are made by HUD to do so…However, in the grand scheme of things within the housing market today and the view that I see from the ground floor, now is NOT the time to move forward with this proposal. Keep Reading...