31 Jul Holly Walther Lending Team: Fun Fact Friday – Closing Costs
Holly: Hi guys, happy Friday! It’s Holly and little Miss Daisy, and we are in deep conversations this morning. I actually think she may be meditating. But anyway, we are here with your fun fact Friday, and guys let’s talk closing costs. We seem to be getting a lot of questions about this lately. So just wanted to highlight: If you are doing an FHA loan, you can get up to 6% in seller concessions of your seller’s price. So quick math, $200,000 loan, you can get up to $12,000 in seller pay closing costs.
The challenge with that is it’s highly likely you’re not going to need that much. On a conventional loan: if you’re putting 5% or less than 10% down, you can only get the 3% sellers concessions. Over 10%, you can get 6%. So back to that FHA example, and if you’re doing a VA loan, you’re going to be limited to 4%.
Now I don’t expect you to remember all these percentages, but what I do want to remind you, whether you are the consumer, our client, or a real estate agent, be sure that you are calling us. And once it’s time to start this active negotiations, we’re really going over the closing costs. Because here at Holly Walther Lending Team we are super, super OCD when it comes to the numbers. We want them as accurate as possible on the front end. And we don’t want you or your client leaving any money on the table. So just because they can get that $12,000, depending on sales price, doesn’t necessarily mean they need it. Not all loans are created equal. Every loan is different, the terms are different, and what people need is different. So be sure to call us. Know that we’re always here as a resource, reach out to us when you find yourself in that situation and have a great weekend.