Yes, but only for FHA loans. As of last week many FHA guidelines were changed. One of those Guidelines include the percentage buyers can obtain in Seller provided closing cost. Previously, a buyer could receive up to 6% of the purchase price from the seller for nonrecurring closing cost (in the state of California and I believe nationwide but I am not sure). As of last week the max is 3%. This reduction is said to prevent inflation of sell prices. Generally, a seller will increase the asking price of any given property with the assumption that the buyer will require up to 6% back to cover closing cost, this process inflates the market value of a house. I hope this answers your questions
Shira Crawford
Realty World Agent
Monterey, California
(949) 232-3232
Generally the buyer pays closing costs. Some closing costs legally MUST be paid by the buyer. However, the seller could offer to pay some costs if they want to, or the buyer could ask the seller to pay some of the closing costs. Ultimately the seller has to decide how badly they want to make the sale.
The percentage is negotiable.
The underwriting requirements of a mortgage you may be taking to buy the property have restrictions that dictate the percentage and the type of closing costs that the seller can pay and still allow the borrower to qualify for the loan. These vary with all of the many mortgage programs that are available. == == Generally those closing costs that can be paid by the seller for the buyer are referred to as "non-recurring" closing costs. Call your local escrow company, and they can tell you what is appropriate for your area.
No, prior to the closing, the attorney or title company should have all the information in regards to all costs in buying the home. At close, everyone will be given a HUD/Settlement Statement--the left side will list all costs pertaining to the buyer and on the left all costs pertaining to the seller. If the seller is paying some or all your closing costs the title company/attorney will show your costs on the seller side. In other words, you will get credit at the close. Depending on the state in which you live and the type of loan you are doing, the seller is limited to a certain amount that they can pay. Normally you will not be reinmbursed by the seller after close if the seller offered to pay more than they were allowed.
Everything is negotiable. In the US, the closing costs are mostly a buyer expense. The Seller has some closing costs such as commission to a listing agent if one is used, deed preparation, and revenue stamp fees charged by the state or locality. Often the buyer will have the seller pay a portion of closing costs to conserve cash, while paying a slightly higher price. Many large builders are also in the mortgage business and pay some closing costs to have another revenue stream.
Generally the buyer pays closing costs. Some closing costs legally MUST be paid by the buyer. However, the seller could offer to pay some costs if they want to, or the buyer could ask the seller to pay some of the closing costs. Ultimately the seller has to decide how badly they want to make the sale.
The percentage is negotiable.
The underwriting requirements of a mortgage you may be taking to buy the property have restrictions that dictate the percentage and the type of closing costs that the seller can pay and still allow the borrower to qualify for the loan. These vary with all of the many mortgage programs that are available. == == Generally those closing costs that can be paid by the seller for the buyer are referred to as "non-recurring" closing costs. Call your local escrow company, and they can tell you what is appropriate for your area.
You can borrow it from your Whole Life cash value, sometimes you can finance it in, money back from the seller for closing costs, borrow it, etc.
No, prior to the closing, the attorney or title company should have all the information in regards to all costs in buying the home. At close, everyone will be given a HUD/Settlement Statement--the left side will list all costs pertaining to the buyer and on the left all costs pertaining to the seller. If the seller is paying some or all your closing costs the title company/attorney will show your costs on the seller side. In other words, you will get credit at the close. Depending on the state in which you live and the type of loan you are doing, the seller is limited to a certain amount that they can pay. Normally you will not be reinmbursed by the seller after close if the seller offered to pay more than they were allowed.
Everything is negotiable. In the US, the closing costs are mostly a buyer expense. The Seller has some closing costs such as commission to a listing agent if one is used, deed preparation, and revenue stamp fees charged by the state or locality. Often the buyer will have the seller pay a portion of closing costs to conserve cash, while paying a slightly higher price. Many large builders are also in the mortgage business and pay some closing costs to have another revenue stream.
As a rule, closing costs to buy a new home are about 2 to 4 percent of the purchase price. Closing costs are to pay for items such as inspections, recording fees, and title insurance policies.
Many time a potential buyer does not have the funds for a downpayment and the closing costs. The seller will give money back to the buyer at the closing to cover these costs. In most cases, the seller is mainly concerned with what they are netting..meaning how much money they are actually walking away with. A Seller's Concession is a tool to help a potential buyer qualify to purchase. Assuming the home appraises out there is very little impact on the seller
I am in the mortgage industry 23 years. My experience has taught me that a Veteran can have the seller pay the closing costs on the buyers behalf. But if you have a savy realtor who can get a seller to sign the purchase contract which states the seller will pay $5,000.00 of the buyers closing costs, it is allowable provided the purchase contract clearly states what the seller agreed to pay on the buyers behalf. I recommend you put a dollar figure (such as $5,000.00) rather than stating "seller to pay buyers closing costs" because the seller will know up front what he is expected to pay on your behalf and won't freak out at time of closing. If the seller does not agree to pay any of your closing costs, you may still benefit from purchasing the home in other ways. Be creative. Include in the contract that a home warranty covering the roof, the pipes, the waterheater, or the A/C unit, kitchen appliances, any pre-existing structure damage be repaired and defects in electrical wiring be covered for 3 or 5 years, and ask the seller to pay from the proceeds so it is the seller's expense. Or ask the seller for new appliances, or get a new A/C unit as a condition of the purchase. Do not ask for too much though, and inform your Realtor of your desires so s/he can do the bargaining for you. After all, they are the professionals. Oh yeah, this is a biggy. If you are not comfortable with your realtor, find one who makes you comfortable. It does matter how they treat you and remember, a good realtor will be comfortable to do business with.
Closing costs of a mortgage are incurred when the loan is settled. If the loan is completed outside of a tie-in period there are no costs. If the loan is settled with a tie-in period, costs of up to 5% may be incurred.
You can apply to a different bank for the remaining 10 percent and closing costs. However, you will most likely get the loan at a very high interest rate because of your bad credit.
No how can it be leagel