I'm pretty sure I know the answer...here's to hoping for different answer!
Short Sale participation letter states: "If the loan is FHA insured the seller cannot pay the Buyer’s closing costs". Q1. That's my seller's loan, right? Not the buyer's. Buyer's agent wants it to be thier-side so they can go conventional if need be. I believe/know it's the seller. Q2. Is it possible to request a variance with ANY SUCCESS? (Please say yes and how I go about getting it.)
It will be difficult to get a (current or new ) buyer to purchase without closing costs.
Thanks!
Tags:
Just need to know:
- when the participation letter states "If the loan is FHA insured the seller cannot pay the Buyer’s closing costs," is this the seller's loan (I believe it is);
- if it is the seller's loan, is it possible to get a variance to have closing costs included in the sale from FHA/HUD? And what is the best way to get the variance with success?
If you have a buyer whose utilizing ANY type of financing whose requesting 3% in closing costs, have your negotiator to submit a variance request directly to HUD. They are normally approved with normal and customary closing costs AS LONG AS the required net to HUD has been met. I do this on all of my FHA shorts, which easily make up about half of my short sale business. Additionally, if you have a negotiator who refuses to submit the request, contact the FHA Servicing hotline directly. They'll jump right on it.
Good luck!
Do you have the FHA line number by any chance? I have a second mortgage that is with HUD yet the negotiator tells me they need to submit a variance but she cannot tell me if its for that second lien HUD has or what she says is two different things can any one help me out here please?
The seller can contribute 1% to the buyers closing costs IF the buyer is getting FHA financing. If the buyer is NOT getting FHA financing then the seller cannot contribute anything to the buyers closing costs. You can apply for an exception. However it's probably easier to find a buyer that doesn't need closing costs assistance.
can you provide the fax number please? This is the first time I run into this believe it or not and I am quite lost here ;( Thank you much!
If the seller has FHA financing, only a 1% seller concession will be allowed for a new FHA loan.
Alisa
If the seller has FHA financing, only a 1% seller concession will be allowed for a new FHA loan.
Alisa
Vanessa, only FHA and Conv?
Just received a VA offer asking for $3,000 non-allowables to be paid by seller, whose loan is FHA. VA fall within those parameters?
Thanks
Vanessa Calhoun said:
You can request a variance for up to 3% in closing costs with either a conventional or FHA. Just make sure that the net to seller falls within their required parameters. I have done it on all of my FHA short sales.
alisa hagner said:
If the seller has FHA financing, only a 1% seller concession will be allowed for a new FHA loan.
Alisa
© 2024 Created by Short Sale Superstars LLC. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.