Home Buying in Leominster>Question Details

Mike B, Home Buyer in 01510

Question about Seller's Concessions

Asked by Mike B, 01510 Sun Apr 4, 2010

I'm purchasing an REO property owned by Fannie Mae. They are currently offering an incentive by which they will pay 3.5% of the selling price towards closing costs and/or appliances. My mortgage program allows a maximum seller concession of 3%.

My question is do the appliances count as "seller concessions" as far as my lender is concerned? There should be excess funds which I would like to use towards appliances. Would these typically appear on the HUD settlement?

Help the community by answering this question:


Hi Mike,

From my experience, appliances are not usually included with the seller's concessions. Seller's concessions are usually the closing costs, which are attorney fees, recording fees, lender fees, first mortgage payment, taxes or utility reimbursements, etc. In general, closing costs could run anywhere from $3000-$5000 depending on the amount of the loan and how much you're putting down, etc.

Now if you are buying this home with perhaps a 203(k) loan option, then appliances may be able to be added into the loan, as well as any other repairs noted by a licensed contractor. I would check with your loan officer on that one since it is not normally included with the seller's concessions. Good luck!

Angela Dolber
Prudential Prime Properties
0 votes Thank Flag Link Sun Apr 4, 2010
Anything with a value is a concssion. Actually ran into aproblem with the 3.5% - in MA youcan only ge 3% tops.

Everyting has to apper in he HUD sheet wth a $ vlue - hence the problem with the 3.5
0 votes Thank Flag Link Mon Apr 5, 2010
Appliances are not Seler concessions and the bank will not allow you to take that extra 1/2% unfortunately. Guidlines will not allow it :(
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Mon Apr 5, 2010
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