Ways Buyers Can Save Money at Close
Seller Concessions:
Percentage of purchase price towards allowable costs (percentage depends on program and downpayment, see chart below).
In addition to concessions, sellers can pay for the following:
1. Seller can waive tax pro-rations from the buyer on the purchase agreement.
2. Disburse Use and Occupancy fee's (if any) to Buyer at closing.
3. Pre-pay association fee directly to the association. By giving the buyer a paid receipt allows this cost to remain off the final HUD.
|
Conventional |
|
|
Down Payment |
Allowable Concession |
|
0 - 10% |
3% |
|
11 - 24% |
6% |
|
25% or more |
9% |
|
FHA and Non-Conforming |
|
|
Down Payment |
Allowable Concession |
|
3% |
6% for costs/3% for downpayment (through 3/31-2008) |
|
VA |
|
|
Down Payment |
Allowable Concession |
|
0% |
6% |
|
Investment Properties |
|
|
Down Payment |
Allowable Concession |
|
All down payments |
2% |
