Home Selling in 63937>Question Details

dlsummers77, Other/Just Looking in Cadiz, KY

How do I help a buyer with his down payment on the sale of my house?

Asked by dlsummers77, Cadiz, KY Wed Nov 28, 2012

I own a home and property appraised at $124,900.00. I have it listed for $113,900.00, (taking a loss). Many potentials are not able to come up with the 15-20% down payment their banks want. I have a buyer who lacks $4000.00 on having the 15% required by his bank. I don't have the $4000.00 to loan him, so what can I do to help him?

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You can give him a seller's concession so that way his closing costs can be covered, which would require a lower outlay of cash from the buyer.
0 votes Thank Flag Link Wed Nov 28, 2012
One thought is to increase the contract price by $4,000 and then you pay $4,000 towards his closing costs. He can then use his money for down payment rather than CC.

If you don't have a Realtor, you should get one to help structure the deal. You might be able to get $125k :)
0 votes Thank Flag Link Wed Nov 28, 2012
OK, first, if they are looking at a 20% down, they are looking at conventional financing. I would suggest that they also look at FHA financing because a 3-3.5% down is required then. If there is a reason why your home cannot be sold using an FHA loan, fix the problem.

Have you talked to your Realtor? Your Realtor or the Broker may know about programs in your area that buyers can apply for, from state, county or federal funds. Often there are federal HUD funds available that are administered through the county via a contractor. Check out: http://www.makinghomeaffordable.gov/get-started/housing-expe…

Please keep in mind that while you may have an appraisal on your property, the buyers bank will do their own appraisal and it may come out lower than the one you have. If that happens, depending on how your contract is written, you may have to lower your price to the appraisal price or the sale will be cancelled because the buyers bank will not loan him more money than the home appraises for.
0 votes Thank Flag Link Wed Nov 28, 2012
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