The seller can credit the buyer using an FHA mortgage up to 6% of the sales price and must be negotiated into the contract.
” Buyer and Seller agree the seller will pay up to 6% of buyers closing cost and pre-paids”
The limit on how much the seller may contribute is 6%. Any contribution above this 6% requires a dollar-for-dollar reduction to the property’s sale price that will be applied before calculating the loan-to-value ratio.
FHA APPRAISAL- Out side of the closing cost the buyer may have to pay $450-550for the FHA appraisal upfront. The FHA appraiser must get paid whether the home appraises or not.
HOME INSPECTION– The home inspector works for the buyer. The FHA mortgage lender does not require a home inspection. The home inspection is for the buyer to ensure the home meets the buyers minimum standards. Home inspections prices can vary from as low as $250-400. Ask your realtor for a recommendation.
