Lender Standards for Seller Concessions on Conventional Loans

By
Real Estate Agent with La Rosa Realty

Lender Standards for Seller Concessions on Conventional Loans

Orlando Real Estate Buyers should expect their Realtor's to negotiate seller concessions for closing costs on every transaction! Unfortunately not all Realtor's who operate as a buyer's agent know the acceptable lender guidelines!

Below are the guidelines for lender standards for seller concessions on conventional loans:

Primary Residence:

From 90 to 100% financing seller can pay up to 3% of buyers closing cost.


From 80% to 90% financing seller can pay up to 6% of buyers closing cost.


From below 80% financing seller can pay up to 9% of buyers closing cost.

Second (Vacation) Home or Investment Property:

If it is a second home or investment property the seller is limited to 2% on any Loan to value level.

 

Lender standards for seller concessions on conventional loans

 

 

What does all this mean for an Orlando Real Estate Buyer?

Now you may want to ask what 90 to 100% financing means? Here is an example: You purchase a home for $100,000 and pay $9,000 (9%) in cash as a down payment. The remaining $91,000 or 91% is financed with a lender and you obtain a loan. With this example a seller could pay 3% of buyer closing costs if the purchase is for a primary residence.

This is important information for ALL Orlando Real Estate Buyers because a properly negotiated contract can lower your upfront costs (out of pocket)! Imagine if most or all of your closing costs are paid for!

If you would like to work with a Realtor who can best represent your interest as a buyer make sure they are knowledgeable, experienced, and trustworthy! 

Call Orlando Realtor Thomas Staples at (407) 619-6249 or email thomas@thomasstaples.com if you would like to discuss Lender Standards for Seller Concessions on Conventional Loans  or other strategic negotiating techniques for a real estate transaction.

Posted by

Thomas Staples, Realtor

La Rosa Realty

(407) 476-4993 - Mobile
www.tstaples.larosarealty.com - home search

thomasstaplesblog.com - orlando, ocoee, winter garden blog site

 
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