Seller Concessions make the difference in property sales!
Seller concessions reduce a buyer’s cash to closing
Sellers Contributions are deducted from the Seller’s Net Home Proceeds
Raising Sales Price of the Home to cover concessions eliminates financial impact from the Seller
Seller Concessions can cover – Buyers closing costs which may include mortgage-related fees, title company fees, the set-up of an escrow account, home owner’s insurance costs, Home Inspection, Termite Inspection, State Taxes and more.
Use Seller Contributions for Upfront FHA, VA, and USDA Fee
All Government-backed Loan types allow you to prepay funding fees with seller contributions
FHA: FHA loans require an upfront mortgage insurance payment equal to 1.75% of the loan amount. The seller may pay this fee. However, the entire fee must be paid by the seller. If you excess seller credit, but not enough to cover the entire upfront fee, you cannot use the funds toward the fee.
VA: The seller can pay all or part of the upfront fee of 2.15% – 3.3% of the loan amount. The fee counts towards VA’s 4% maximum contribution rule.
USDA requires an upfront guarantee fee of 2.0% of the loan amount. The buyer can use seller contributions to pay for it.
