Home Buying in Maryland>Question Details

Jeff, Home Buyer in Maryland

Settlement costs in MD

Asked by Jeff, Maryland Mon Oct 6, 2008

Can anyone tell me (in general) what seller contributions CANNOT go towards buyers' closing costs. I believe down payment may be one item, but what else CANNOT go towards buyers' closing costs? If this question cannot or should not be answered used Trulia, do you know what source I can refer to for an answer?

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Answers

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This one is pretty straightforward. You must have your own downpayment but that can also be a gift. DPA is dead using the sellers money but you can still use other gift money from other sources including of course your family. Anything else can be picked up by the seller, including points, prepaids and any additional closing costs such as an appraisal. You can buy with just the 3 % downpayment and nothing else at least in theory. Hope this helps. Please let me know if you have additional questions.
Thanks,
2 votes Thank Flag Link Mon Oct 6, 2008
Down payment is not considered a closing costs. Seller credit may go towards all closing costs and all prepaid items as long as you dont exceed your mortgage program's guidelines. Typically 3% if you're only putting 5% down or less and 6% if you're putting at least 10% down. FHA will allow for up to 6%.

Talk with a Loan Officer to make sure you're squared away BEFORE you write the contract!
2 votes Thank Flag Link Mon Oct 6, 2008
Down payment is not considered a closing costs. Seller credit may go towards all closing costs and all prepaid items as long as you dont exceed your mortgage program's guidelines.The anwer below is 100% correct.
1 vote Thank Flag Link Mon Oct 6, 2008
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