Azshane, Home Buyer in Maricopa County, AZ

How common is it for bank owned properties to pay closing costs? What is the average percentage they do cover if any?

Asked by Azshane, Maricopa County, AZ Wed Sep 30, 2009

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Not up to bank most of time is approx. $2500 based on amount of the loan. All depends on YOUR lender approval.

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0 votes Thank Flag Link Wed Sep 30, 2009
It is fairly common for banks to agree to pay a portion of the closing costs for a foreclosure transaction. Our recommendation is to identify a real estate professional that will represent you and protect your interests.

Good luck
0 votes Thank Flag Link Wed Sep 30, 2009
Thank you paul your information was helpful. I have not submitted the offer yet I am viewing final 3 homes this weekend and will submit an offer on my choice the middle of next week.
0 votes Thank Flag Link Wed Sep 30, 2009
Hi Azshane,

Thanks for your add'l info, but my answer still remains the same. While it is common for sellers to contribute to buyer's closing costs, it all depends on the other terms and conditions in your offer, other competing offers and negotiations. Is the seller paying any of your costs? If so, how much?
Also, don't forget that there are certain fees that you are not allowed to pay for on a VA loan and also don't forget that the seller is responsible for the payment of the termite inspection. I hope that was written in your offer.

Exclusive Buyer's Agent
0 votes Thank Flag Link Wed Sep 30, 2009
I guess I should have given a little more insight into my situation to better guide answers.

I am receiving a VA Home loan, Around 100k, and plan on closing mid november. When I had spoke with my agent about this question he did not sound to sure if I would get and closing costs covered at all.
0 votes Thank Flag Link Wed Sep 30, 2009

That depends on the bank and how strong the offer is written.

If you are an FHA approved buyer, then the banks typically understand most FHA buyers today will be asking for those and on home in the 100k range it's 99% of the time.

Your closing costs will range around 4k depending on how much home you are purchasing.

I have had some reduce the closing costs and used part of the commission I earn to help make up the difference but only if needed.

Another place to look for assistance is the money offered by what is known as an NSP or DPA. These are down payment assistance programs and with the down provided, you can use the remainder of your money to pay your own closing costs, making your offer to the bank stronger.

You can read about those here:

If you are a 1st time buyer I suggest you try to research the home buying process and discuss this with a Realtor in advance so you can lay out the best plan and strategy for you to purchase a home.

There is also a pamphlet called the "Arizona Buyers Advisory" that you should research.

Here is a link to the Buyers Advisory article I wrote on Trulia:…

Let me know if there is anything else I can help you with.

And remember, Always work with a Realtor.


Stew Keene
Home Smart Realty
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0 votes Thank Flag Link Wed Sep 30, 2009
Hi Azshane,

Yes it is common for sellers of bank owned properties to pay some, if not all of the buyer's closing costs. However, in a competitive market like ours, where there are lots of homebuyers, there are quite a few homebuyers that will pay their own to make their offer stronger. If/when your closing costs are paid, the percentage varies, but it's not always a percentage...sometimes it's a dollar amount. Typically, you would be safe asking the seller to contribute 3% of the purchase price towards your closing costs, but that amount and the strategy differs and varies on each property and for each seller. The amount you ask for, if any, depends on other factors in your offer, such as price, COE date, other terms and conditions, type of financing or cash, etc.
So, speak with your real estate agent. If you don't have a Buyer's Agent helping you, then get one before doing anything else.

Exclusive Buyer's Agent Realtor
0 votes Thank Flag Link Wed Sep 30, 2009
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