Click To View Links

Can The Owner Pay The Closing?

by JESSICA JONES
(HIGH POINT,NC)



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"?

======ANSWER=====

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.

Regards,

Jeff Ragan

Comments for Can The Owner Pay The Closing?

Click here to add your own comments

Owner Pays Closing Costs
by: Raine

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.

Thanks for asking such a good question.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask The Expert.

New Jersey Grants

Click on Image to Learn More

South Carolina Grants

Click on Image to Learn More

Recent Articles

  1. FHA Lending Guidelines

    Jun 10, 17 02:58 PM

    According to the FHA lending guidelines, is it possible for escrow to be paid out of packet instead of rolled into the loan? What are the guidelines for a 2nd time home owner? These are answered below…

    Read More

  2. FHA Title 1 Loan Explained

    Jun 08, 17 08:15 PM

    Are you interested in the FHA Title 1 Loan program and wonder where to find a lender who works with this program? Others have wondered the same thing, find the answers on this page.

    Read More

  3. FHA Help

    May 26, 17 03:14 PM

    Would you like some FHA help? Perhaps you are wondering if it is wise to add a significant other to the mortgage? Or why a mortgage company would ask you to go conventional instead of FHA? Find answer…

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans


Follow Us On Twitter

follow me on twitter