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how much can seller contribute to closing

this is for an FHA loan, the house is $300k. what is the maximum amount they can put towards the closing costs?? by sacapanomike9157 from Albany, Oregon. May 1st 2015 Reply


Fha allows upto 6% seller contributions. Watch the loa limit for linn county. You might be better with a different loan product with the down payment you will need. Conventional only allows 3%

May 1st 2015
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Chris Barry (TheLoanDoctor)
#45 ranked lender in Oregon - 40 contributions

FHA allows 6%. On a $300K sales price that's $18,000.In the current market it could be difficult to get a seller to agree to credit this much. There are other options. Call me and we can discuss your situation in greater detail.

May 1st 2015
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Randy Free (rfree@opesadvisors.com)
#20 ranked lender in Oregon - 47 contributions

A Seller can contribute up to 6% of the sales price for an FHA Government loan. The 6% can only cover the closing costs and escrow pre-paid items...and never any of your required 3.5% down payment of the purchase price.If you would like me to email you a specific Loan Comparison to help you understand your loan options, I will be happy to help. Note: There is no cost or obligation for you to explore your lending options with local mortgage professionals such as myself. You are free to explore and free choose. I encourage you to take the time to become fully informed of your lending options, and to make sure you have your 'ducks in a row'.Feel free to call.Randy FreeMortgage Advisor NMLS# 283930Opes Advisors, Inc. NMLS# 2355844710 Village Plaza Loop, Suite 210, Eugene, OR 97401(541) 984-5428 Direct Phone

May 1st 2015
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 157 contributions

6% on an FHA loan. Gemember that this can only be towards closing costs, not the down payment.

May 4th 2015
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#137 ranked lender in Florida - 644 contributions

Max is 6% seller credit towards closing costs and escrows, CAN NOT be towards down payment...

May 4th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

FHA allows up to 6% of the purchase price, but may not exceed actual costs. For other programs, the maximum "seller paid" closing costs depends on the loan type (FHA, VA, USDA, Conventional), and potentially the down payment size. Consult your local mortgage broker for more details and information on your particular case. In MN, WI, and SD, visit www.JoeMetzler.com

May 4th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

6% as others have said, which is likely more than you really need. A good mortgage lender will suggest an amount or % of the purchase price to negotiate for when they pre-approve/prequalify you for the loan.

May 4th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

FHA allows a maximum of 6% but they also have a maximum loan amount of $271,050 for Linn County, so unless your plan is to put nearly $30K down, you wont be able to go FHA.. Also understand that the 6% cannot be used as down payment, but only closing costs associated with the purchase.. 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

May 4th 2015
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