The amount of the seller assistance is dictated by the type of mortgage.
The seller may pay up to 6% of the sales price to the buyers costs for an FHA mortgage.
For a veteran mortgage (VA), the seller is allowed to pay all closing costs, and the prepaid and escrow costs up to 4% of the sales price.
How does Sellers assist benefit the seller?
Sellers assist helps buyers purchase the property that they want without having to come up with another 2-5% of their purchase price. Generally, a buyer will offer more than the seller’s asking price when asking for sellers assist.
Will sellers pay closing costs?
Sellers often pay for part or all the buyer’s closing costs. For home buyers struggling to come up with their down payment, moving expenses and closing costs, asking the seller to cover these expenses is a great way to minimize your out-of-pocket expenses. Lenders can also pay your closing costs.
Is seller assist taxable?
Seller paid buyer’s closing costs are not deductible on a tax return. However, any seller paid closing costs on behalf of the buyer are expenses of the sale for the seller.
Can seller assist exceed closing costs?
The limitations of the “seller assist”
One, as discussed, is that seller concessions may not exceed the sum of a buyer’s closing costs. Another is that the home’s “adjusted” sales price must be supported by the home loan appraisal.