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Seller Paid Closing Costs
One of the greatest reasons
for choosing an FHA loan is because the allowed
seller contributions are increased from 3% to
a whopping 6%! This is usually more then enough
to cover all of your closing costs, and this
if course means that you will have more available
money to furnish your new home for example.
For example if you are about
to place a bid on a house valued at $100,000
as the list price. You might be thinking about
making an offer for the property in the amount
of $94,000 since it is common practice to bid
under the list price. But instead of placing
that lower bid you might what to accept the
list price as is on condition the seller pay
6% of the value toward your closing costs. So
no you have covered all your closing costs and
the seller is still getting the same amount
of money they thought they would be in the first
place.
This method also works if you
have good reason to believe the property is
valued much higher then the sales price. In
the case the seller will not accept any amount
below $100,000 and you have very good reason
to believe the property is valued at $106,000
or more you may be able to add that 6% to the
top of the loan giving you a loan in the amount
of $106,000 but keep in mind the sales price
must now be increase to $106,000 and now include
a seller concession of $6,000 and the end result
is the same for the seller and you have saved
$6,000!
Apply
Now to discuss options with your
Loan Officer!
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