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Are seller concessions allowed on all types of loans?

by KCobain from Tulsa, Oklahoma. Mar 7th 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,369 contributions

Yes.. FHA allows up to 6%, USDA is unlimited, VA allows up to 4%, conventional owner occupied and 2nd homes allows for 3% if LTV is 90% or higher, 6% if LTV is over 75%, and 9% if LTV is 75% or less.. if your purchasing Investment properties using conventional, the maximum contribution is 2% regardless of LTV.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mar 7th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

See Charlies reply, it is very accurate to what to do

Mar 7th 2013
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Chris Davenport (todaylending)
#20 ranked lender in Oklahoma - 36 contributions

All of ours. Conventional 3%, FHA and HUD 184k 6%, VA 3%.

Mar 7th 2013
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Jenny Baker (mortgagemom)
#72 ranked lender in Georgia - 26 contributions

I can not think of a single purchase product that does not allow some type of concessions

Mar 7th 2013
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Tyler Whyburn (OklahomaMortgage)
#21 ranked lender in Oklahoma - 24 contributions

Yes. FHA, 184 (when it becomes available again) 6% of the purchase price, VA 4%, and Conventional 3%. I am here in Tulsa, feel free to call me with any questions 918-394-5626.

Mar 7th 2013
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Kevin McGoff (kmcgoff)
#41 ranked lender in Massachusetts - 3 contributions

They are allowed on all types of loans depending on the loan to value, loan type and occupancy type. Keep in mind that the concession can never oer the own pyment and can onl be used for the closing costs and pre-paid items needed to establish the escrow accout. If you have questiosn try my cell at 781 771-9976.. Best of luck.. Kevin

Mar 7th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Yes. Ask your seller to pay "all of the allowable buyer's closing costs, both recurring and non-recurring".

Mar 7th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

Good info from the others that have replied. One tip... if for example a seller agrees to pay the max 6% seller concessions on a FHA purchase and your closing costs only amount to 3%, instead of giving up the other 3% use it towards points to buy down the interest rate. As kmcgoff stated, the concession can't be applied towards down payment so the only way to take advantage of the entire 6% would be to increase the closing costs with discount points, giving you a lower rate for the life of the loan.

Mar 7th 2013
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Joe Metzler (JoeMetzler)
#2 ranked lender in Minnesota - 3,721 contributions

Yes... but it varies based on the loan program, so be sure to check with your lender for the exact program you are using to purchase your home. www.StPaul-Mortgage.com

Mar 7th 2013
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Peter Botros (PeterBotros)
#71 ranked lender in New York - 895 contributions

Yes. 6% FHA, 4%Va, 3% conventional <10% down, 6% conventional if you put >10% down.

Mar 7th 2013
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Florian Steciuch (RevereseMortgagePro)
#42 ranked lender in Indiana - 22 contributions

Seller concessions are NOT allowed on reverse mortgage for purchase loans.Email me with any questions: askflorian@gmail.comThank you

Mar 7th 2013
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Florian Steciuch (RevereseMortgagePro)
#42 ranked lender in Indiana - 22 contributions

Seller concessions are NOT allowed on reverse mortgage for purchase loans.Please email me with any questions: askflorian@gmail.comThank you

Mar 7th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

yes

Mar 7th 2013
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