Forgotten Your Password?

Need to Register?

Question Icon

What amount can a seller pay toward buyers closing costs? 95% conventional. Recurring and non recurring. Owner occupied.

by tmcrealty764 from , California. Apr 22nd 2014 Reply


Colby Neal (ScottsdaleInsurance)
#109 ranked lender in Arizona - 71 contributions

Typically 3% in seller paid closing costs is the max for Conventional financing.FHA, VA, USDA allow up to 6% www.imortgagelending.com

Apr 22nd 2014
1
0
Sara Deere (Saraloveshomeloans)
#39 ranked lender in Kansas - 534 contributions

I agree with the already submitted answer. http://saradeere.openmortgage.com.

Apr 22nd 2014
1
0
Michele Kole (MicheleKole)
#860 ranked lender in California - 9 contributions

Fanniemae guideline for conventional financing is 3% for LTV/CLTVs greater than 90% If LTV/CLTV is 75.01-90% the max is 6%

Apr 22nd 2014
1
0
Karren Grieco (HomeFundingCorp)
#850 ranked lender in California - 4 contributions

Anything LTV greater than 90% the max you can do is 3% contribution on owner occupied. If LTV between 75%-90% then you can do the 6%

Apr 22nd 2014
1
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,620 contributions

If you' re doing a owner occupied purchase with 5% down on a conventional loan., then 3% is the maximum.. if you put more down, the seller can contribute more as well.. up to 9% if you put more than 25% down. FHA allows up to 6% and no limit for USDA or VA financing.. the funds can be use for all costs associated with originating a mortgage except none of the concessions can be used for down payment.. 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

Apr 22nd 2014
1
0
Hans Bruhner (hans@asktheloanman.com)
#203 ranked lender in California - 18 contributions

Everyone's answers so far are correct at 3%. The 2nd part to your question has not been answered. Most lenders do not differentiate between recurring and non-recurring fees so the 3% can go towards both.The mortgage industry spent years training Realtors to separate out and make sure we say the credit can go towards non-recurring fees only and now that it can go to both, we want you NOT to do that because it could limit the credit for your clients so just say towards closing costs and if the lender has a restriction it will still be OK.I am in CA and happy to help (415) 843-0142

Apr 22nd 2014
0
0
Subscribe to our news feed.