Posted on: 18th Jul, 2011 11:42 pm
How much can a seller contribute to the buyer for the purchase of the property? Can a seller contribute towards the down payment that the buyer has to pay?
Hi Guest!
Welcome to forums!
As far as I know, sellers can contribute towards buyer's loan. However, there are certain restrictions. On conventional loans, the seller contributions is restricted to 3% of sale price with 5% down payments, and to 6% with 10% down payment. In case of FHA loans, sellers can contribute up to 6% of price to the buyers settlement costs. However, they won't be able to contribute anything to the down payment.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, sellers can contribute towards buyer's loan. However, there are certain restrictions. On conventional loans, the seller contributions is restricted to 3% of sale price with 5% down payments, and to 6% with 10% down payment. In case of FHA loans, sellers can contribute up to 6% of price to the buyers settlement costs. However, they won't be able to contribute anything to the down payment.
Feel free to ask if you've further queries.
Sussane
It depends on the loan that we are talking. You can help out with the down payment if you are on a conventional loan like what is mentioned by Sussane however, you should observe certain restrictions on making down payments.
