Florida Mortgage | No Closing Cost Loans ~ Seller Concessions

For a homebuyer, there are a lot of enticements that can be broadcast to help them purchase their first or next home with very little or no money out of pocket. One of the best ways this is accomplished is via Seller Concessions.

With as much as 6% of the purchase price "given" by the seller, the buyer can effectively avoid certain costs that could creep up that they would normally have to pay themselves.

The definition of a Seller Concession is an agreement between the Buyer and the Seller that the seller will pay for something at closing. Here are examples of seller concessions:

Closing Costs - a.k.a - $0 Money Down, No Closing Costs..
Rate Buydowns - discount the rate by paying points
Temporary 2-1 Buydowns
Repairs
and more...

It is important that the buyer, seller and their agents all work closely with their trusty Mortgage Broker to make sure that the wording of the concession in the contract will not create an issue in underwriting.

Click on the following link to learn how to achieve the best results from a Seller Concession: Florida Mortgage | No Closing Costs ~ via Seller Concessions

For more information about Seller Concessions, First Time Home Buyers or Affordable Loan products, contact me by following this link!

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
TheMortgageGoToGuy.com
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Posted Saturday Oct 13

( 10/13/07 12:11PM ) — Central Oregon Real Estate | Broker Thesa Chambers, Licensed in Oregon

Just in case I have not told you - I really appreciate your information - it certainly helps me be a better Real Estate Broker... thank you for always taking the high road and providing great information

( 10/13/07 12:12PM ) — Jason Schweiger

Good info. I have been doing the closing costs on my listings.

( 10/13/07 12:49PM ) — George Souto

David, Seller Paid Costs seem to be a part of just about 50% of the purchase loans I do these days.

The one thing that I think that Buyers seem to have a hard time understanding about this, is that the Seller is going to add these costs to the net amount that they want to get on the sale. Some how some Buyers seem to think that the Seller is going to pay these costs, and that the loan amount is going to be the Sales Price minus the Downpayment, minus the Seller Paid Costs. They seem to identify the Seller Paid Costs as part of the Downpayment, and it takes a little while to get them to understand the difference.

Having said that, I am a fan of Seller Paid Costs because it frees up money for the Buyer to do work on the house or keep in reserve once the loan closes.