Hello Jeff, I am thinking about buying that first house. Although I am very nervous, I find your site helpful and informative. I have a question, "Can The Owner Pay The Closing"?
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Hello Jessica,
Hey, great question here. When we buy a house, there will always be closing costs involved and every time it becomes a subject that needs to be discussed.
It really depends on what mortgage product you are using. Some home loan products do not allow the seller to pay closing cost while others do.
So to get to the point on closing costs, the owner can pay up to 3% of your closing cost if you are buying the house on an FHA mortgage. If you are a first time home buyer, this is the best mortgage product for you anyway.
So, if the purchase price of the house you are buying is $100,000 then the seller (owner) can pay up to $3,000 towards your closing cost.
This will certainly be helpful if you are short on cash.
Please visit this page on my site which will explain this in greater detail. FHA Closing Cost.
Also, you may want to watch my FREE video on the Good Faith Estimate Explained which will help you. It is about 26 minutes long but well worth the time spent since it could save you thousands of dollars.
Thanks for stopping by my site and please tell your friends about us.
I will have to investigate the FHA mortgage. In this economy, I bet more owners will be open to paying these closing costs. It is good to know that certain loan products allow this.
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