Will a Seller Pay my Closing Costs?

“Will a seller pay my closing costs?” is a question we are asked frequently. It depends on two main items:

1) Type of loan you are pre-approved for

2) Situation with the property

 

Credits for closing costs can be anywhere from 3%-6%. On a $300,000 loan that can be anywhere from $10,000-$18,000. Typically for conventional loans the lender will allow the seller to credit you back 6% of the purchase price towards your closing costs. For FHA loans, it is a maximum of 3%.

 

It also depends on the situation with the property. For example, if there are multiple offers and/or you are going in under the asking price, then chances are the seller is not going to accept your offer if you also ask for closing costs to be paid. However, if you are the only interested party and the home has been on the market for several months the seller may agree to pay all or part of your closing costs. It is important to have us or the Realtor you are using find out the maximum credit allowed by your lender and understand the seller’s situation. We work with our clients to get them credits towards their closing costs whenever possible. The more money you save and the overall lower price you get for your home, the happier you will be.