Help Needed:
My fiancée and I put an offer in on a (FHA approved) short sale property in Southern California very recently and received a quick response from the listing agent and then a very quick response from the bank. Here's part of the email out agent sent us:
"Good news. Agent received very quick response to your offer from lender.
Lender is requiring a $3,000 cash contribution to be paid at close of escrow by cashier's check.
They are basically looking for more cash in addition to your 3.5% down payment.
Agent recommended changing purchase price to 189k(including 2,000 of your costs) with 3.5% down and writing addendum for $3,000 cash contribution. This way you are still paying 192k and lender gets their $3,000 cash contribution."
I don't know why, but this strikes me as fishy, maybe it's because our extra $3K wouldn't go to our principle, for all I know it'd be palmed by the listing agent.
Any helpful tips/insights would be great.
Thanks!
Tags:
I was researching a bit and did notice the lender asking for a Seller Contribution, but I hadn't seen anything that asked for a buyer contribution, so I thought it was weird too.
Yes, we are FHA approved...
Thanks for the help, I'll be sure to ask our agent for a copy of the request from the lender, hopefully that will clear things up.
After going around a bit with our lender and Realtor here's the bottom line:
"FHA will not allow a $3,000 cash contribution to be paid by the borrower. It is not allowed by ANY lender under any circumstances using FHA financing."
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