Home Buying in New Haven>Question Details

Dave, Home Buyer in New Haven, CT

Can I ask for seller concessions more than 6% of the purchase price?

Asked by Dave, New Haven, CT Sat Oct 23, 2010

We settled on a price of $275k for our first home, the home inspection discovered necessary repairs that could cost $20,000. We're willing to make the repairs but want to keep as much cash as possible after the closing. We're doing an FHA and I know the limit for concessions is 6%, but we want to ask the seller for $20k for the repairs. Would anything over the 6% to pay closing costs and pre-paid be taken out of the financed amount, or do we need to word the new offer as $270k with $15k seller concessions to get our $20?

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I agree with the other answers, you definitely should talk to you r lender. I did have a similar situation and we rewrote the contract, but we lowered the price of the home to reflect the cost of the repairs.
0 votes Thank Flag Link Sun Oct 24, 2010
You will need to ask your lender how you they will handle this. Most lenders do not allow cash back to the buyer at closing. You may be able to do a repair escrow and the money would be held until the work is done and then paid for from that escrow. Anything left in the escrow after the repairs are paid most likely would go back to the seller.
0 votes Thank Flag Link Sat Oct 23, 2010
You need to talk to your lender. They can let you know what the various options are.
0 votes Thank Flag Link Sat Oct 23, 2010
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