Seller Paid Closing Cost?

More and more buyers are short the cash they need for the down payment and closing costs. One way to overcome this cash shortage is for the seller to pay a portion of the closing costs. How much the seller is allowed to contribute depends on the type of mortgage loan. When you ask the buyer to pay a portion or all of your closing costs, in essence you are financing the closing costs. This is because the seller’s contribution is typically offset by a higher purchase price. And it is this higher purchase price that is financed with your mortgage loan.

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This entry was posted on Friday, August 29th, 2008 at 1:00 am and is filed under Buyers Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.