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FHA loan questions on seller costs?
I'm trying to find a house and get an FHA loan to buy it with. I've learned that the seller can only pay up to 6% of the closing costs. However I was reading about seller concessions. Is that the same thing as seller paid closing costs or is it different and allowed with FHA loans so that the seller can pay all the closing costs?
2 Answers
- real estate guyLv 71 decade agoFavorite Answer
Iffy is wrong. The seller can pay and usually does pay closing for the buyer.
The 6% is the TOTAL concession that a seller can pay. However, keep in mind that closing is usually not 6%, but it does depend on your area. Lets say closing is 3% and the contract has 6%, FHA will ONLY allow the seller to pay UP TO the TOTAL ALLOWABLE closing costs. You will NOT receive a check for the other 3% from the seller.
This is why you should know BEFORE you make an offer what the closing costs will be.
- ?Lv 71 decade ago
You will not get the sellers to pay your closing costs in this tight market. Seller concession is not charging you for the Tank of Heating Oil. You need to realize very few homes meet FHA standards.
