Forgotten Your Password?

Need to Register?

Question Icon

How much can borrower ask for in closing costs?

by jasonrobinsonreal... from , Indiana. Feb 18th 2014 Reply


Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Are you asking about a sellers concession?

Feb 18th 2014
1
0
James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

It is dependent on which home loan program you are utilizing. Generically speaking, up to a maximum of 3% on insured conventional and up to 6% on government home loans (i.e. FHA, VA or USDA).

Feb 18th 2014
1
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,944 contributions

Depends on the actual loan program... Standard conventional is up to 3%. FHA is up to 6%. Other loans vary...

Feb 19th 2014
1
0
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Each loan product is different,. USDA has no limit, and conventional allows for up to 9% depending on how much your putting down, FHA allows for 6%, and VA allows for 4%. but for the most part, 3% is customary, and should be enough to pay for all your closing costs.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Feb 19th 2014
1
0
Dan Marchiando (dan@yourbestinterest.net)
#471 ranked lender in California - 29 contributions

Hi Jason,You can negotiate with a seller or other interested parties for whatever you want, but lenders do have restrictions on what they will allow in a financed transaction. The answer to your question does depend a few factors. FHA loans have a maximum "Interested Party Concession" (IPC) of 6%, of closing costs and pre-paids expenses. Anything over that 6% is considered a purchase inducement, and results in a dollar-for-dollar reduction to the sales price in the lender's eye.For an Agency Fannie Mae loan, the maximum depends on your down payment. If your down payment is less than 10%, then the maximum "Interested Party Concession" is 3%. If your down payment is 10% to <25%, the IPC is 6%, and if your down payment is 25% or more, then the max IPC is 9%. I hope that helps.Sincerely, Dan Marchiando

Feb 19th 2014
0
0
Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

Not enough information to answer correctly other than what the panel already explained

Feb 20th 2014
0
0
Subscribe to our news feed.