How much can the Sellers contribute toward a 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.