Financing in Philadelphia>Question Details

20601055m, Home Buyer in Lake Ariel, PA

if you get 6% sellers assist is there a cap on how much the assist can be

Asked by 20601055m, Lake Ariel, PA Fri Jun 22, 2012

on a sales price of 220,000 the sellers assist would be 13,200.00 is it caped at 10,000.00

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6
Yes, the 6 % is the max that the seller can credit to you, this includes credit towards closing costs/repairs from inspection or even the appraisal.

Doug Gungor
Realtor®
Coldwell Banker Preferred-Old City
223-225 Market st
Philadelphia, PA 19106
Cell:(267) 455-2613
Office:(215) 923-7600
Fax:(215) 554-6363
http://www.douggungor.com
0 votes Thank Flag Link Sat Jun 23, 2012
Hello

The seller assist is towards closing costs and pre-paid taxes and insurance. If there is only $12,430 in closing costs then the seller assist will be limited to that amount. If that happens I suggest paying a higher origination charge on the mortgage to lower the interest rate and thereby not lose somer of the seller assist.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
0 votes Thank Flag Link Sat Jun 23, 2012
It actually depends on not only what type of mortgage you are getting, but also the down payment you are giving. Yes for FHA it's capped at 6%, but for conventional financing the caps are as follows:

Greater than 90% LTV = 3%
75.01% – 90% = 6%
75% or less = 9%
Investment properties are capped at 2%

Therefore the $13,200 would only be allowed on a FHA mortgage or a conventional mortgage with at least 10% down.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Jun 22, 2012
If your loan is FHA you can get up to 6 percent assist but 3.5 percent has to be your own money down. If the assist overlaps the 3.5 percent you need to adjust the assist. If you have any further questions or need more information you can call me anytime at 267-228-3910
Nick Sylvestro
Associate Broker
Remax Access
0 votes Thank Flag Link Fri Jun 22, 2012
No, it is not capped at 10k.

Let me know if you need any assistance with your purchase.

Best Regards,

Alexander Shulzhenko
Realty Mark Cityscape
267 738 0886
0 votes Thank Flag Link Fri Jun 22, 2012
Of the total closing cost with an FHA loan you must put 3.5% of your own funds. So if the amount of the sellers assist is is greater it will be reduced to the difference of your own contribution.

Your lender should be able to explain these figure to you in exact figures!
0 votes Thank Flag Link Fri Jun 22, 2012
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