Max Amount Of Seller Help By Loan Program...

Good morning!

Do you know the best way to get sellers to help pay your closing costs, prepaid taxes, insurance and reserves when you buy a home?

…You ask them! (In a tight market some seller’s are reluctant to offer alot of help, but you can always ask.)

You make it part of your offer to purchase.

Here is a breakdown of the maximum seller help amounts by loan program…

Program: Conventional (fannie/freddie), owner occupied…

1) 25% or more down payment = 9% allowed seller contribution.

2) Less than 25% down and up to 10% down payment = 6% allowed seller contribution.

3) Less than 10% down payment = 3% allowed seller contribution.

4) Fannie Mae Homepath: less than 25% down = 6% allowed contributions; 25% down or more = 9% allowed contributions.

Program: FHA

1) 6% maximum seller contribution.

Program: VA

1) 4% closing cost contribution.

Program: USDA

1) No limit to how much sellers can contribute (is limited by actual closing costs/prepaids). When a home appraises higher than the sales price, closing costs can be financed with USDA rural loans up to the difference between the sales price and appraised value.

That’s it for today!

Have a good day today! …and thanks for reading.

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Update - Government Shut Down On Real Estate Business...

Good Morning!

I wanted to follow up on my blog post from last week...   http://www.berkshirelending.com/2018/12/26/how-gov-shut-down-will-affect-mortgage-business/

It was about the government shut down affecting the mortgage business.

Many wholesale investors are now suspending the requirement for pulling tax validation transcripts.

I figured this would happen.  ...otherwise, all purchase transactions would be shut down until the government reopened.

So, that's good news for those of us buying houses, or in the real estate business.

That's it for today!

Have a good week, and thanks for reading!


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Great No Money Down Loan...

Good Morning!

Hope you had a great New Years!

Want to buy a nice home in the country or outlying suburb with no money down?

Here's a program that might work for you...

It's called USDA, and here are some details on this program...

-Up to 100% of the Appraised Value – Total LTV of 102% –
-Difference of sales price and appraised value can be used for closing cost
-No Down Payment Required
-No Cash Reserve Requirement. No cash contribution requirement
-Unlimited seller concessions
-Unrestricted gifts, not necessary to document source, no seasoning
-First time home buyers allowed, but not limited to first time home buyers
-Non-traditional credit may substitute for lack of credit history
-Repair Escrow financed in loan up to $10,000 or 10% of loan

That's it!
Have a good day today!  …and thanks for reading.

Brett


Get Pre Approved For A Loan Here
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