SELLER CONCESSIONS

A seller concession is when the seller will (out of the loan proceeds) pay for some or all of the closing and financing costs to a maximum listed below.

An interested party can provide you with Seller Concessions.  Interested parties include: the builder, the developer, seller of the property and real estate agent. 

The amount a seller can contribute is based on how much YOU put down.   

     If the LTV  is over 90%, the maximum seller concession is 3% of the sales price.

     If the LTV  is 76%- 90%, the maximum seller concession is 6% of the sales price.

     If the LTV  is under 75%, the maximum seller concession is 9% of the sales price.

 

With FHA  Loans: Keep it simple: As long as the applicant puts 3% down, the seller can pay up to 6% of the sales price toward closing costs  and points.

 

For more information, please call DAN PALUMBO at 1-800-817-8743.

 Dan is the published author of the Mortgage Loan Officer Training Manual.  You may order one by visiting www.mortgagetrainingmanual.com
 

 

Licensed Mortgage Banker - New Jersey Department of Banking and Insurance; Licensed by the Pennsylvania Department of Banking; Virginia Licensed Mortgage Lender