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In the market to buy a home with minimal down payment, us seller concessions to help bridge the gap


The market has done away with 100% financing loans, purchase a home with a minimal down payment with the help of seller concessions.


The housing industry is struggling with well documented declines in home values. There are a number of home buyers who would like to purchase but lack the adequate funds to purchase a home and cover the closing fees. The good news is that with almost every loan product in the market you are able to request for a seller to cover a portion of your closing fees through seller concessions. This must be negotiated into your purchase agreement up front and the seller must be willing to accept these terms. The key for a home seller is that this will effect their bottom line and it will be important that they fully understand what their net home sales amount will be. A good real estate attorney or sales agent can help navigate this part. On conventional financing most loan programs allow for a 3% seller concession if you have a 5% down payment. If you are working with a down payment greater than 10% then you can request up to 6% back from the seller which could be a good way to buy down your interest rate for the life of the loan through discount points. If you are purchasing a home and financing with an fha mortgage then you can also ask for up to 6% seller concessions. With FHA loans you are required to put down 3% as well, but this could all be in the form of a gift. The home buying season is now getting started, utilizing all of the resources available to purchase will be critical to helping more buyers qualify for homes.

5-19-08 ? LoanNetwork.com





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