What Can A Seller Pay?

These are Fannie Mae, Freddie Mac, HUD and VA guidelines that all lenders have to follow.

VA-Seller can pay up to 4% of sales price towards closing cost.  On a VA you MUST have a termite report with no conducive conditions needing repairs.  Also, seller must pay $1300 of buyers closing cost.

FHA-Seller can pay up to 6% of the sales price towards closing cost.  There are not any seller required cost like there are on VA.  There used to be, but they were removed that many years ago.

Conventional loan- if buyer is putting down 5% the seller can pay 3% of the sales price towards closing cost.  If the buyer is putting down 10% to 25% the seller can pay up to 6%. If the buyer is putting down 25% or more the seller can pay up to 9% towards closing cost.

If the property is an investment property the seller can only pay up to 2% towards closing cost no matter how much the buyer is paying.


Source: Tammie Mitchell