KEYWORDS:FHA Seller Concessions 2013
FHA Seller Concessions 2016:
FHA allows 3.50% down payment for a purchase of a home. FHA also
allows for a 6% seller 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. Seller concession up to 6% or $6,000.00 if the purchase price is $100,000.00 .
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
you find a property you want to make an offer on you must include the
seller concessions 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).
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 3.5% down payment. These Fico credit score requirements went into effect in the spring 2010.
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. Seller concessions are allowed with credit score below 580.
Items you will need to Purchase a home:
* One Month Pay Stubs
* W2's & Tax Returns for the Last Two Years
* Two Months Banks Statements (all pages)
* Purchase Sales Contract
* Verifiable Rental History
* Copy of Social Security Number
* Copy of Driver's License
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?
FHA Seller Concessions 2016
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FHA Seller Concessions 2016
What's the minimum credit score needed to buy a house or refinance in Florida?
FHA loans require a minimum 500 credit score to buy a house or refinance
VA loans require a minimum 500 credit score to buy a house or refinance
Fannie Mae loans require a minimum 620 credit score to buy a house or refinance
USDA loans require a minimum 580 credit score to buy a houseor refinance
HomePath loans require a minimum 620 credit score to buy a house
HARP loans require no minimum credit score torefinance
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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