aside from a 3% concession by the seller, can the seller put the rent back money towards my closing costs

Asked by Vinny, Hopewell Junction, NY Sat Jan 29, 2011

seller needs to rent the home for an additional month after closing, i don't have a problem with this. but on the other hand i am real tight with funds on hand to close

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Heidi Zizza, Agent, Framingham, MA
Sun Jan 30, 2011
I don't believe that they can however they will and should pro-rate any rents allready paid prior to closing just as they do with taxes.
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Tom and Joan…, Agent, Boston, MA
Sun Jan 30, 2011

This is really a question for a mortgage broker. The limit on the 3% seller contribution only applies to FHA financing and if you do other financing you may be able to come up with more creative ways to complete the deal. Best of luck.
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James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Sun Jan 30, 2011
Hi Vinny,

I lean toward agreeing with both Phil and Tim on this..."rent backs" as this is termed can add uncertainty and serious issues, plus, the lender must be informed adding one more thing for them to review. These days, keep the transaction as simple as possible.

Best wishes, Jim, HSOA.
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Tim Moore, Agent, Kitty Hawk, NC
Sat Jan 29, 2011
I am with Phil on this, if you can delay settlement 30 days you are better protected. If you have to close because the loan lock would expire or some other reason, then get the closing company or attorney to add the month rent the seller owes you in the HUD1 and it will offset some closing costs. This will be the sellers paying in advance but they should be happy to do it.
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Phil Rotondo, Agent, Melbourne, FL
Sat Jan 29, 2011
a. I would consider extending the closing for 30 days so that the current owner will be out of the home when you take possession.
b. Treat it as two separate transactions - the contract for sale and a lease of the property
c. Discuss this with an attorney with anything you consider putting into action
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Joe Arnao, Agent, Sanwich, MA
Sat Jan 29, 2011
Ask for it. We have structured similar deals, but recommend our buyers stay away. Is your attorney ok with Seller keeping possession of the home you are buying? You may want a strong lease in place. Being a landlord in MA is not that easy. Talk to your attorney.
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