Credit for Closing Cost

I have submitted an offer for a short sale here in Fresno ca, everything was good my buyer is able to go CONV. Financing with Great credit and 10% down. Now we are having issues with negotiator saying that the bank will not credit my buyer any closing cost. They will only credit them if they go FHA or VA. Per investor guidelines. Has anyone every had this problem and if so what should i do or not do here. I cant go FHA due to the buyers husband hindering the FHA aproval guidlines. So we must go CONV. since we are only using the wife.

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Replies to This Discussion

Permalink Reply by Uilani De Motta on November 26, 2012 at 9:00am

There are many lenders that will not give Closing cost credits on Conventional loans. I've come across this with WF, IndyMac, BofA (depending on the program). This is not unusual.  It's always worth trying for but being denied for it is not unusual. (Located out of Walnut Creek in CA)

Permalink Reply by Sheyenne Schultz on December 4, 2012 at 4:25pm

This is common and most servicers will NOT pay for closing costs or ALL the closing costs when they see buyer is a conventional loan purchaser...

2 things to do: 1) Have your buyer's lender CREDIT him/her the closing costs....this is simple and done plenty of times..this way buyer keeps the closing costs in their bank acct and does not have to bring those to the table on top of their downpayment....Their lender can show them how they can do this..the interest rates are low enough right now to do this.

2)you may have to ask the servicer...if you can ADD the buyer's closing costs on top of the purchase price

so if purchase price is $300,000 and 3% closing costs equal $9000  new purchase price is $309,000 and with seller crediting buyer 3% closing costs...??? You would have to do an addendum or send in a revised pg1 of the contract and ASK if this can be done. Servicer will have to ASK or get permission from investor, etc...  this may take longer   so HMMMM

And frankly, I know it's annoying BUT if ANY buyer can afford to go conventional...they should have known about closing costs and about how much they would be from their lender that PRE APPROVED the buyer....they would have TOLD them this and U when u took the buyer shopping whether he/ or she HAD the money for the down and ALSO money for x amount of closing costs....  Sounds like buyer HAS the money, but just does not want to part with it..or bring to the table.....then have lender credit the costs....or bring to the table and write it off as a one time fee  or loss on his taxes... welcome to the world of buying real estate.  Hope this helps

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