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Seller Concessions 2017
FHA allow 3.50% down payment for a purchase of a home. FHA also allows for a 6% seller's concessions. So, if you want to buy a home for a $100,000.00 you will need $3,500.00 for the down payment. The down payment can be a gift from a family member. Your closing cost can be rolled into your loan. So, the only cash you will need to buy a $100,000.00 is around $3,500.00.
The seller must agree to a seller's concessions and in the above case you are allowed a concession of up to $6,000.00 for closing cost.
Seller Concessions in Writing
When you find a property you want to make an offer on you must include the seller's concession in the sales contract. You can write it in two ways as a dollar amount (seller will pay $6,000.00 for closing cost) or you can write it in a percentage amount (seller will pay up to 6% of the purchase price for closing cost).
Minimum Credit Score of 500
Seller Concessions 2017
Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA policy changes require minimum FICO credit score to be 580 for 96.5% down payment. These Fico credit score requirements went into effect in the spring 2010. However, most individual lenders will still require credit scores higher than 640.
A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for a FHA loan than a for a conventional loan. Sometimes score down to 500 are accepted if there are compensating factors that offset the credit risk.
Credit score below 580 require a larger (10)% down payment on a purchase. On a refinance, the maximum loan-to-value on a rate and term refinance is 80% of the property value. Case by case on a cash-out refinance.
Apply for a home loan with a Seller Concessions 2017.
FHA Seller Concession 2017
Closing cost - FHA allows the seller to pay up to 6% of your closing cost.
If you are buying a $100,000.00 house FHA allows the seller to pay up to $6,000.00 for your closing cost. It must be in writing in the sales contract, "Seller will pay up to 6% of buyer's closing cost."
If you do not write it into the sales contract then you will be paying the closing cost. In the state of Florida closing cost for a $100,000.00 house average around $4,300.00 depending on taxes, insurance and who's paying the transfer tax and owner's title insurance.
By allowing the seller to pay for your closing cost you will decrease the amount of money required to buy a home. Buying a $100,000.00 property requires $3,500.00 down payment and if the seller pays up to $6,000.00 for your closing cost you will only need around $4,000.00 to buy a $100,000.00 in Florida.
Are you short funds to close? The FHA no closing cost loan allows all of your closing cost to be rolled into your loan including your appraisal fee, hazard insurance premium and even your escrow account.
Are you a first time home buyer? Do you need to get pre-approved for a first time home buyer program in Florida?
Call us 888.958.5382
FHA Seller Concession 2017 FHA Seller Concession 2017
Call us 888-958-5382
www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.
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What's the minimum credit score needed to buy a house or refinance in Florida?
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FHA loans
FHA loans require a minimum 500 credit score to buy a house or refinance
VA loans
VA loans require a minimum 500 credit score to buy a house or refinance
Fannie Mae
Fannie Mae loans require a minimum 620 credit score to buy a house or refinance
USDA loans
USDA loans require a minimum 580 credit score to buy a houseor refinance
HOMEPATH
HomePath loans require a minimum 620 credit score to buy a house
HARP refinance
HARP loans require no minimum credit score torefinance
Freddie Mac
Freddie Mac loans require a minimum 620 credit score to buy a house or refinance
Want to know if you qualify for an FHA loan? Get pre-approved for an FHA loan online.
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