How Sellers Can Pay Your Closing Costs... Episode 259

How Sellers Can Pay Your Closing Costs...    

...when you don't have enough money to close a sale

Many Home Buyers are finding it hard to save up for a down payment

Let alone have enough $ for the closings on a home purchase

Let's Suppose that a buyer wants to purchase a home for $300,000

The down payment for an FHA Loan is 3.5%

Most conventional loans require at least 5% down

That means a buyer would need between $10,500 - $15,000 saved up

Closings cost can vary, but lets use 2% for this example

that means and additional $6,000 is needed to make the deal work

The buyer will need $16,500 - $21,000 in verifiable cash in the bank

Not everyone has that kind of $$$

with the way inflation has been over the past few years

and this is the #1 thing that crushes a home buyers dreams

There is a way for sellers to pay your closing costs

and many will do it in order to get their homes sold

Lets suppose a seller is willing to pay 3% towards a buyer closing costs

That's $9,000 that can be used by the buyer

for closing costs, insurance, interest rate buy downs,etc

Some things to know if the purchase price is $300,000 :

• The home would need to appraise for $300,000
• The seller actually nets $291,000 (300k-9k)
• If the appraisal is low, the deal will need to be re-worked

today's show gets down and dirty with the details