No, I am not a Loan Officer but I do answer a variety of home loan questions. I always make sure that my buyers are connected to a reputable Loan Officer but I also do some loan education as questions arise. Many buyers need help with closing costs and so the subject of closing costs always comes up from time to time. Here is some information that might come in handy in your quest to purchase a Kitsap County area home.
There is a limit on what a seller can contribute towards your closing costs. This is dictated by the loan program that you apply for.
For conventional home loans with less than 10% down the maximum a seller may contribute is 3% of the purchase price. If you are going to put between 10% and 25% down the seller can contribute up to 6% of your closing costs. Putting down more than 25% the sellers can contribute 9%.
If you are going to be applying for a FHA loan the maximum seller contribution is 6% of the purchase price.
If you are using your VA Eligibility for a VA home loan the sellers contribution is a maximum of 4% of the purchase price, unless the seller agrees to contribute towards discount points.
In a buyer’s market a buyer usually will be able to negotiate some closing cost contribution from the seller. Seller’s in Kitsap County are slowly coming around to the fact that they must be willing to contribute if they want to sell there home.
If you need assistance with more home buying loan information just give me a call and I would be more than happy to share with you my team of local lenders.
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