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How much can a seller contribute?

Super Contributor

How much can a seller contribute?

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?

 

 




Message 1 of 8
7 REPLIES
Established Contributor

Re: How much can a seller contribute?

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. 


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Message 2 of 8
Super Contributor

Re: How much can a seller contribute?

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




Message 3 of 8
Established Contributor

Re: How much can a seller contribute?

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


Starting Score: 760
Current Score: 716 Equifax 754 TU 736 Experian
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Message 4 of 8
Super Contributor

Re: How much can a seller contribute?

Shane ?? Dallas??




Message 5 of 8
Valued Contributor

Re: How much can a seller contribute?


CS800 wrote:

Shane ?? Dallas??


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.

Good Luck
May all your dreams and wishes become a reality!
Message 6 of 8
Moderator

Re: How much can a seller contribute?

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.

Message 7 of 8
Super Contributor

Re: How much can a seller contribute?


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.


Great thanks for the info




Message 8 of 8