Did FHA actually reduce seller concession limit?

[Anonymous]

I'd been hearing the limit would go from 6% to 3%.  Did it actually happen?

[indiasnowden]

If you mean how much the seller can pay towards closing costs on your behalf the answer is yes.  I am approved for FHA and am waiting on my appraisal to be done.  I made an offer of $59000 with $3K of  closing costs plus one point. My LO said the seller assistance is limited and the buyer can no longer receive any excess at closing.   If the costs come in lower, which they probably will, my LO said the excess is returned to the seller.  Also, for FHA mandated repairs, the seller will have to put 150% of estimated repair costs into escrow.  After the work is finished the seller receives whatever amount is remaining.  I think I explained this correctly.  Maybe Shane the MortgageMan will chime in for you. Good luck to you.

[BrianB_The_Loan_Professor]

No it has not gone into effect yet you can still get up to 6% for closing cost credit - any not used will be refunded to seller

B