The buyer needs a sellers contribution for his down payment and has increased his offer by that amount. This is a BOA short sale, and of course "contribution" is just semantics since it just means the buyer is financing closing costs, but will that fly with BOA? With any lender? Thanks for you help.
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Karen - Bottom line.......if it is an FHA deal HUD only allows a 1% closing "IF" the buyer is getting an FHA loan as well. Otherwise, HUD will not allow a credit. A "variance" could be requested, but that will take the servicer additional time to obtain. But HUD pre-foreclosure short sale guidelines clearly state buyer CCC are only allowed up to 1% IF the buyer is going FHA. Good luck! Bert
See attached FHA Fact Sheet
FHA fact sheet.pdf
Ok, if the buyer NEEDS a credit to close, reject their contract immediately because they simply are not qualified to buy a short sale and will waste yours and your clients time. Next.
Thanks for all the replies. This is FHA and it's BOA. I submitted the offer and will report back. Thanks again for all the input. Karen
Depends on the guidelines in the SS program and the buyer's funding. It's the Investor guidelines that matter. Just try it, up to about 3%.
Pretty much every lender I've worked with has approved up to 3% in buyer's closing costs when the buyers were getting FHA or VA financing.
do you mean closing cost credit? This is allowed.