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

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