Posted on: 22nd Feb, 2010 05:34 pm
I am pre-approved for an FHA loan and I just placed a bid on a home. It's a short sale. The selling agent said I had the best offer. I am asking if the seller can credit me 3.5% in closing costs. The sellers agent informed me that the sellers bank will more than likely not credit for any closing costs. So I'm told that I would have to pay all the closing costs myself. Besides paying the full amount of closing costs or canceling my bid, what other options, if any, do I have?
You will definitely have to pay the closing costs. You may be able to use gift funds from a relative. Your other option if you and the property qualify is a USDA loan. 100% financing.
I heard people telling me that I can roll the closing costs into my loan. Is that possible?
Not on purchase transactions but, a 3.5% sellers concession is more than reasonable. I would stick with the offer w/ the 3.5% and see what happens. I've done many bank sales that accepted a sellers concession.
