What's the liklihood of getting an FHA approved waiver to pay closing costs for buyer that is either non-FHA buyer or needs more than the 1% allowed? what about waiver to pay for Termite and moisture repairs needed to obtain the clear termite/moisture letter for the mortgage?
thx
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I've never had one rejected at 3% when the net is still being met. HUD will have to approve the Variance and a copy of GFE will be required.
We have received variance approvals for additional concessions. The variance usually adds 30 more days to the process. The max was 3%, but the biggest issue will be what FHA is willing to pay. If you receive an approval on the additional concession, FHA has the option to not pay for certain expenses for the buyer. We have never had FHA pay for Termite/repairs due to the property is being sold as is.
I have attached an allowable cost sheet. I would suggest having the title company complete a GFE HUD-1 and then check the buyers expenses vs. the allowable cost guidelines. Most of the time, there are not enough allowable costs on the HUD for buyers to use the 3%. Chad@MYclosing.com
FHA ALLOWABLE EXPENSES.pdf
That is most helpful. Thanx. I have only done 1 FHA SS before, and I did not want to fail to ask for something that was often approved and therefore lose an otherwise good buyer. Again, thx.
It's a 50/50 shot. The question you must ask, is: Does the buyer NEED the concession to close? If the answer is yes, then they simply are not qualified to make an offer on a short sale.
www.josephalfe.com
That is sort of what I thought, but wanted some verification. thx