How much can a seller contribute?

[CS800]

I'm planning to buy a house in 2013 and would ike to know for a conventional loan (5%) down, much much can the seller contribute towards closing cost?

[frogfan12]

It depends. You can ask for all of the closing costs, a certain amount, or you can ask for nothing. I really wanted my house and the seller was strapped for cash (despite having a lavish wedding), so I didn't ask for anything. 

[CS800]

For my last house, the seller was generous. But in this market where a lot of people want to sell their house, I just have to find a motivated seller.

I have heard that on a lot of short sale, the bank is generous. But I was wonderign if there was a max % that the seller could give

[frogfan12]

I'm not sure if there is a max percentage. Maybe someone else out there has a bit more expertise than I do. 

[CS800]

Shane ?? Dallas??

[JM-AM]

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@CS800 wrote:

Shane ?? Dallas??

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There have been restrictions as to how much a seller can pay towards closing cost. I am unsure how they determine the value. With that said I also know there are ways to apply the money for minimal cost to you.

[StartingOver10]

On a conventional loan the max percentage is 3% of purchase price for seller contribution toward buyers' closing costs and pre-paid expenses.

For FHA loans the max percentage is 6% of purchase price.

For short sales the max percentage is 3% and not all short sale lenders will even allow a seller contribution.

[CS800]

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@StartingOver10 wrote:

On a conventional loan the max percentage is 3% of purchase price for seller contribution toward buyers' closing costs and pre-paid expenses.

For FHA loans the max percentage is 6% of purchase price.

For short sales the max percentage is 3% and not all short sale lenders will even allow a seller contribution.

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Great thanks for the info