Shay, Home Buyer in Jersey City, NJ

With a FHA loan that requires 3.5% down payment, can I add the closing cost on top for a short sale property?

Asked by Shay, Jersey City, NJ Thu Jul 9, 2009

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Jeff Belonger, , Cherry Hill, NJ
Thu Jul 9, 2009
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.



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Infinity Home Mortgage Company, Inc
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1 vote
Paul Gallucci, , New Jersey
Thu Sep 17, 2009
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
0 votes
Francesca Pa…, Agent, Manasquan, NJ
Fri Jul 10, 2009

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
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John Sacktig, Agent, New Jersey, NJ
Fri Jul 10, 2009
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.
0 votes
Larry Story, Agent, Greensboro, NC
Thu Jul 9, 2009
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
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