Profile picture for this2willpass

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. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

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.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
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.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
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
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
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]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06
Profile picture for wetdawgs
No money can be pocketed.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 06
 
Related Questions
The buy's agent didn't collect the earnest money
Profile picture for Hamp Yonce
Latest answer by Hamp Yonce
16 minutes ago | 2 answers
Seller Cannot Close
Profile picture for Geofrey Merino
Latest answer by Geofrey Merino
20 minutes ago | 9 answers
Rent with option to buy
Profile picture for Ronald  Shaffery
Latest answer by Ronald Shaffery
41 minutes ago | 1 answers
You have many homes listed under "pre-foreclosure". How do I make an offer on 1 of these?
Profile picture for Ronald  Shaffery
Latest answer by Ronald Shaffery
42 minutes ago | 3 answers
good job, high income, bad credit - want to buy a condo
Profile picture for Paul Deibler
Latest answer by Paul Deibler
55 minutes ago | 4 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.