Hi Shay,

We like to see it state: Sellers Contribution of $ ....... . On an FHA that number cannot exceed 6% of the purchase price. When your realtor submits the offer have the sellers contribution on it because it really is determined by the bank if they'll approve it or not.

Let's say they'll approve 4% of the purcahse price of $200,000. or $8,000. So now the purchase price is $208,000.. Its ok, but keep in mind the property still would have to appraise for $208,000.00.

PS. If you happen to live when you work, you can perhaps qualify for up to 5% off your loan amount FREE, the only requirement is that you would have to live in the property for 5 years; and the beauty thing about this FHA program is that you can have a ZERO fico score and still buy.

Good luck in your home findings. If you have any additional questions or know of anyone buying, please don't hesitate to email me.

Sincerely,

Victor M. Jaramillo
Area Sales Manager- Team C Division
Omega Financial Services, Inc.
1872 Morris Avenue
Union, NJ 07083
(908) 933-0253 Office
vjaramillo@omegafunding.net

Agree Jeff,

It has to be worded correctly in the contract. Seller concession is what you seem to be talking about.

As long as the short sale lender approves and allows the amount to be conceded then you will be fine.

Technically the seller is receiving no money so if a seller concession is allowed it just lowers the net amount the bank is willing to receive to close the deal. So in this case its not the sellers choice it's whether the bank will allow it in their payoff demand.

Seller concession approvals vary from lender to lender.

Any other questions feel free to call me.

Paul at http://www.pinnaclemortgageonline.com

Shay,

I don't see any reason you cannot as long as the selling price has been agreed upon by the bank; however, I am not a mortgage pro and would recommend that you consult with same for the most accurate information. (I am currently working on an FHA deal (not a short sale) wherein the buyer has managed to acquire $10k for closing costs!).

Try consulting with:

John Grigos, Superior Mortgage (in business for over 25 years) @ 732.859.8585; or

Leah Plattis, Wells Fargo, 917-657-1965

good Luck!

Love and Peace,
Francesca Patrizio, Realtor, ePro
Francesca@PatrizioRE.com

Yes Shay, You can.

I am a Realtor that knows the mortgage business and I am working on a short sale right now where the closing costs are being ( to use your words) added to the mortgage.

So , yes. it can be done. Would you like to sontact the lender that I am talking about? It is a large bank in Nj and they are fast and direct.

Email me for details and the loan officers name.

JSacktig@orangekeyrealty.com

Shay... that is a misleading answer. Technically you aren't calling it "add closing costs". It's called a seller concession or seller help. Yes, in reality, you are adding that to the purchase price, but not in the same words as you described or the Larry. And yes, it does make a difference, because it's not allowed to put closing costs on top of the short sale property. He might beg to differ, but I am a lender and he is a realtor. And it has to be written correctly in the agreement or the lender won't accept it. Any other questions, please don't hesitate to call me. And if you choose another lender, be really careful on how quickly they can close. The banks like to close in less than 30 days once accepted and approved. Many lenders are taking 30 to 45 days. We can close them on average in 3 weeks. I just closed one in 9 days, but that was after taking it from another lender that dropped the ball and they had an appraisal already.

Thanks,

jeff

Jeffrey J. Belonger
Area Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133

e-mail : jbelonger@ihmci.com

blogs with great mortgage information : http://www.activerain.com/blogs/jeffmortgageman

web site : http://www.fhaloansfhamortgages.com

Shay,
Yes you can add closing cost to your purchase price but, everything is going to have to be approved by the bank that holds the note on the property. I just had a listing that was a short sale. We added closing costs in for the buyer the only stipulation was that they did not pay our commission on the closing costs portion of the purchase price.

Hope this helps