Does FHA Pay Buyer CLosing Costs For a VA Buyer?
Got my ATP yesterday for my FHA PFS. Yay!! Now I have to submit the preliminary HUD. The seller had accepted the offer with the buyer's request for $4000 contribution towards his closing expenses.
I read on the FHA guidelines they only pay up to 1% towards an FHA buyer's closing expenses. This is not FHA and even with the buyer asking for $4000 in closing expenses the bank would net almost $5000 over their 88% required net.
Just heard from the buyer that if the bank won't agree to the $4000 in closing expenses assistance, he's walking. Does anyone have any experience to share about this? Will FHA agree to the $4000 or any amount?
Replies to This Discussion
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Permalink Reply by Justin Berry on
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You should be in good shape. The fact the min net is being met is what should push this towards approval. Tell the lender you need a variance on the closing costs. I would be surprised if you couldn't get this through....
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Permalink Reply by Kevin - Greenville, SC on
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Push for the Servicer to request a variance. $5000 is a bit high if it's over 3% of the purchase price, but is still likely to be approved when you're meeting the net tiered proceeds.
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