Tell me if this makes sense:I have a buyer agent who is willing to give me back 2% commission.I am interested in new construction and home is already built. Seller does not want to lower the price because I think it might affect future sales but is willing to help in closing costs and interest buy down and so on.So if the seller credit is nearly 3% , total credit I am getting is close to 5% at the time of closing.Will a lender approve this ? Is there a max on what the credit can be? What is best way to structure this offer?Thanks,Miguel
Phoenix,AZ | Sep 23rd 2009
by miguel47
Answer
by Wayne P...
by Tim Bra...
Miguel, Generally on a conventional loan if you put less than 10% down the guidelines limit the sellers concessions to 3%. If you are putting more than 10% down then the limit is 5%. If by chance you are going FHA or VA the limit is 6%. I would assume you were already preapproved for the purchase, so I would suggest that you discuss this with the loan officer you are dealing with. In some cases where an excess concession is involved that money would be applied as a reduction of your loan amount, above and beyond your required down payment. Good luck with your purchase. Sep 24th 2009 |
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