Either way, the contract price becomes what you are mortgaging or at least what your downpayment is based off. Thus, in essence, your sellers assist is being financed over the term of the mortgage instead of paying for it today. It works well with buyers who need the money to close on a house or who need some money leftover for potential repairs and/or upgrades.
For more helpful hints, visit our website below. Good luck !
"It should be called 'funds borrowed by buyer for closing costs'.
It's a concession, or "assist," from the seller because the seller is agreeing to assume more risk. The deal is more likely to fall apart for financial reasons because a.) the buyer doesn't have enough cash to cover closing costs, and b.) since the buyer is taking out a larger mortgage, the home has to assess for a higher value.
with credit scores as low as 500. Agents can use it as well as FSBOs and investors who are selling.
We normally can close in 30 days and sometimes as quickly as 2-weeks. We have a live presentation each Tues and Wed followed by a Q&A session where you can get all your questions answered. I will be at both of them myself.
Sellers assist works in many different ways. With the realtors I work with we do it based off of what we want the seller to net for example if you want your seller to net 100k you take 100k and divide it by 94% and you get a mortgage and purchase price of 106385(roughly). If you would of done it by just taking 100k time 6% you acutally get 385 less of sellers assist. Please let me know if I can be of any further assistance. Thanks and good luck
To answer your question that would depend on how your offer was structured. Was it presented as $100,000 with $6,000 back or was the offer $106,000 with $6,000 back? In either case you are mortgaging the amount credited to you.
Long & Foster, Real Estate Inc.
(609) 320-6700 â€“Cell
(856) 856-2338 â€“Office
My learned colleagues below provide a good response.
Also, I would like to add that whatever you intend to do with Seller Assist, check with your lender to see what they will allow depending on the type of mortgage (FHA, VA, Ginnie, Freddie, etc.). Pay very close attention to make sure repair credits don't exceed your allowable Seller Assist amount, and also, that the appraisal will not be compromised because of the Seller Assist.
Your Lender and Realtor will guide you on this.