Seller concessions

This week’s product message is about seller concession do’s and don’ts-

There is a maximum percentage of sale price cap on seller concessions based on loan type, downpayment and occupancy:

Conventional Loans-

     Loan to value 90.01%+=3%

     Loan to value 75.01-90%=6%

     Loan to value 75% or below=9%

     FHA Loans- Max 6% all loan to values

    VA Loans – 4% closing costs and points

    USDA Loans- No max seller contribution*

                              Closing costs can be financed up to 100% of appraisal                            

Non-Owner occupied 2% Max all LTV’s

FNMA Hompath follow standard max
Except up to 6% allowable
with LTV 90%+

*some investors may have an internal policy limiting seller contribution to 6%.

I hope you find this information helpful when negotiating contracts on behalf of your buyers.

I look forward to working with your clients!

Advertisements

About lizschneider66

Mortgage consultant with over 18 years experience. First time buyers, move up buyers, construction, FHA/VA, Jumbo loans, investment property purchases, & refinances- I will find the solution to financing the American dream of homeownership! Subscribe to my blog and never miss any mortgage industry news.
This entry was posted in Uncategorized and tagged , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s