closing cost guidelines when the seller has an FHA loan and the Buyer is getting a New VA Loan

"I have a listing agent for an FHA short sale, servicer is BOA. Buyer has a new VA loan and BOA says HUD will only pay 1% of the buyers closing cost,  I thought this ruling only applied to new FHA loans? The Mortgage Letter 2008-43 only address New FHA loans and no other types of loans.

Thanks for your help!

Gail

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Permalink Reply by Bryant Tutas on June 6, 2012 at 12:45pm

HUD will normally not pay any closing costs but will pay 1% if the buyer is getting FHA financing. I have however had 3% paid on the past on regular financing. So there are exceptions to everything. Much will depend on the NET. The deal needs to meet the minimum NET after all expenses. If it does you may get a variance.

Permalink Reply by Gail Oleaga on June 6, 2012 at 1:17pm

Thanks so much. So, should I ask the negotiator if we ask for a variance and get it will we meet the net?

they told me they do not put the foreclosure on hold until the day of, how ridiculous. Its July 24th, we won't make it if we ask for a variance. I also have cash offers. Would you give the buyer a deadline to say yes I will pay it and if they don't agree move on to the next offer? I have never done that but I dont want to depend on a variance that might never happen, what do you think?

 

Gail

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