Question Details

Jason, Both Buyer and Seller in 30097

Can a seller offer to pay the buyer's PMI or Property Tax payment in order to reduce the mortgage payment?

Asked by Jason, 30097 Sat Aug 23, 2008

I have a person who wants to buy my house, but they are unwilling to come up to my price due to the expected mortgage payment (though they do qualify for the high loan amount). I was thinking of offering to pay the first year or two of PMI or property taxes as an incentive, if possible. I'm not sure if this is allowed though...any thoughts? The person was approved for a FHA loan, so this may have some impact as well.

Thanks

Help the community by answering this question:

Answers

2
Jason
Are you selling without professional representation? It sounds like it.
I would suggest asking an attorney or a mortgage broker this question. Otherwise, this is a question that would be discussed with your Realtor. It's their job to negotiate a win-win arrangement, sounds like you need an experienced negotiator that knows their stuff. It would be a shame to lose this buyer.
0 votes Thank Flag Link Sun Aug 24, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
In FHA you will not be able to do that. You would be better off offer crediting them back say up to 3% of their closing costs where they can put the money they were going to spend aside to offset the costs or reduce the price of the house by this amount. FHA is very specific on what can and can not be paid and how money can or credit can change hands between the buyer and the seller. Goo dluck with your sale Jason.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Aug 23, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer