Home Buying in East Flatbush>Question Details

Rpburghman11, Renter in

I got a fanny mae loan for my house which I am renting to own. In my rent to own agreement 100% of what I pay monthly goes towards owning the home. I

Asked by Rpburghman11, Sat Jan 18, 2014

I have paid 8,200.00 towards ownership. The house sells for 40,000.00 of which I have paid 8,200 already in rent to own money. My loan is for 32,000.00 . But I did not realize closing costs werent a part of the loan. I borrowed the $6500 from my credit union to pay for it with an unsecured loan. I was then told by fanny I could not do that. I don't have that kind of money to pay it myself or relatives who can lend it to me. How do I avoid the closing costs or be able to use the $6500 to pay fanny. I don't understand this sellers concession thing. Can I do this?

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Answers

7
You should be able to include at least 3% of it as seller concession. The lender is right in that you cannot borrow money either as a personal loan or against credit cards, to be use towards downpayment or closing costs. It should be your own funds or gift funds from relatives.

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Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
2 votes Thank Flag Link Sat Jan 18, 2014
You can also borrow the money from your 401(k) or other form of retirement accounts.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
1 vote Thank Flag Link Sat Jan 18, 2014
Also, did fanny mae allow you to have seller's concession? If you have an attorney, you should contact him/her to find out if that is possible. The only problem is, the purchase price will need to be raised to &46,500, of which $6,500 will be given back to you at the closing, but at that time the $6,500 will not be enough. You might need to go up about $7,000 as seller's concession, since all the fees will be higher due to the higher cost of overall purchase price.


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Thank you for your valuable time!

Oleg Volfman, CBR, RSSP
Lic. RE Associate, Office Manager
Quick Deal Realty, Inc
134 Merrick Rd
Lynbrook, NY 11563
Office 516-599-5559
Mobile 917-685-0489
ovolfman@yahoo.com
1 vote Thank Flag Link Sat Jan 18, 2014
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0 votes Thank Flag Link Sat Jan 18, 2014
Ask the lender if the closing costs can be financed.
Or, ask the seller to pay part of the closing costs.
Or, get a gift from someone for the amount you need.
0 votes Thank Flag Link Sat Jan 18, 2014
????
This question, your question should be directed to the source of the problem, the one providing you the loan. They should be able to advise you properly.
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Even if the lender was not available, your real estate agent will know your situation as well as know the requirements of the lender and can see the contracts involved and advise you properly.
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There are a few more surprises for you just around the corner. You may need to take a piece of that $6,500 and pay for some professional guidance. Whether it's an attorney or Realtor, you really should seek a little help.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://FirstLookHomes.us
Palm Harbor University High School distirct
http://annettelawrence.mfr.mlxchange.com/?Page=-1
0 votes Thank Flag Link Sat Jan 18, 2014
Seller's concession is a term used to describe an amount given by the seller to the buyer at the time of the closing towards buyer's closing costs, such at attorney fees, mortgage broker fees, title fees, etc...



If my response was helpful, consider clicking BEST ANSWER!

Thank you for your valuable time!

Oleg Volfman, CBR, RSSP
Lic. RE Associate, Office Manager
Quick Deal Realty, Inc
134 Merrick Rd
Lynbrook, NY 11563
Office 516-599-5559
Mobile 917-685-0489
ovolfman@yahoo.com
0 votes Thank Flag Link Sat Jan 18, 2014
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