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Can seller and lender pay closing costs?

I have a lender offering to pay closing costs and we made an offer on a house and seller has agreed to pay 3% for closing costs. Does this mean I can get money from both parties or is there a limit on how much we can get. Or if able to get money from both if it covers closing costs with extra left over is that money that can be pocketed? Its a 200k FHA loan any advice will help. Thank you. 
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May 06 - US
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Answers (5)

No money can be pocketed.  The lender is giving offering a lender credit for your situation which could result in a slightly higher interest rate.  If you are receivng 3% seller's concession and you have already provided a down payment you do not need to seek a lender credit and possibly get the best rate for your situation.  It is always best to get a couple of quotes so that you may compare side by side so that you may be able to make an educated decision.

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May 07
Agree with all that no money can be pocketed.With an FHA loan the seller can pay up to 6% of your closing costs.
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May 07
Buyer pocketing money has been considered fraud in some cases so it's extremely rare. Also. You need to identify your state with your question because there are thiings that are legal in some states and commonly practiced that are illegal in others
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May 07
You are one among many that is duped into thinking the Lender is paying closing cost. If so asked them to used the funds to buy down your rate vs paying the closing cost as you would get the most benefits there overtime and used the seller contribution to pay your closing cost. I am available for [self promotion deleted by Zillow moderator]
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May 06
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No money can be pocketed.  
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May 06
 
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