Financing in 03103>Question Details

Nhnewbie, Home Buyer in 03103

Can seller contribute towards down payment?

Asked by Nhnewbie, 03103 Fri May 29, 2009

Is the seller allowed to contribute towards closing costs and down payment if the buyer is putting less than 5% down?

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Just a quick addendum to my answer below,
HUD says FHA borrowers can now receive the $8,000 tax credit up front and can be used for closing but not for a down payment. This is a powerful assistance to your housing needs.

0 votes Thank Flag Link Fri May 29, 2009
Highest Rated

Dane Hahn

Hey NH Newbie,

Your best bet will be to find a mortgage company/lender that you like and discuss the options that are available with each different loan. The agent will want to make the loan work (that's how they get paid) and so will usually go the extra mile to find a loan that will fit your needs and your down payment .

Best of Luck

Dane Hahn
NH Broker
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0 votes Thank Flag Link Fri May 29, 2009
Good Morning NHnewbie,

Yes in deed the seller can assit you by paying 3-6% of your closing costs. The seller however can not assist you with your down payment. You can get a gift for the down payment however. Your first step should be to get preapproved, if you need asistance i have some great loan originators i can refer you to. Then your next step is getting a buyer broker to represent you. In most cases you can sign one up at no additional cost to you as they get paid by the listing agent at closing. this way you have someone looking out for you. If you need some asssitance please feel free to email me at . either way good luck with your search.
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0 votes Thank Flag Link Fri May 29, 2009
Dale gave you good advice below. The seller cannot contribute to your down payment. But they can pay up to 6% of your closing costs on a FHA loan and 10% on a VA loan. With an FHA loan you can get a gift from a family member or long standing relationship for the entire 3.5% down needed for an FHA loan.
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Yes most banks do allow this. It's best to check w/the bank 1st...
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0 votes Thank Flag Link Fri May 29, 2009
Generally, they can offer seller concessions to help offset the closing costs. The maximum they can contribute is 6% for a primary residence and 2% for an investment property. If you don't already have mortgage financing in place I would be happy to help you with this.
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