Profile picture for buddy doo

If you ask the seller to pay 2 pt.'s can you use those however you would .

  • November 17 2011 - Powell
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Answers (6)

Check with lender, guidelines are always changing, most likely you will only be able to cover all your closing costs and prepaid up to a certain percentage of purchase price, ask what that percentage is and max it.
  • November 17 2011
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that depends if they agree to pay whatever you are requesting. Have to disclose what for
  • November 17 2011
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You can never use money from the seller for you down payment.

Yes you can; you can use it to increase the down payment, just not towards the minimum down payment.
  • November 17 2011
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It may also depend on the specific contract language. If your contract says the points are for rate buy-down/discount, which is what most would need to say for an intelligent Listing Agent to accept the offer, then that is all they could be used for. If your contract just says up to 2% of price for settlement costs in general. then you have the flexibility to decide.
  • November 17 2011
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Money coming from the seller can only be used for closing costs, pre pids and interest rate buydowns. You can never use money from the seller for you down payment.
Allowable amounts from seller for the various loan types:
VA - 4%
FHA -6%
USDA - Although USDA does not state an exact percentage, 6% is the defacto limit. from my experience.
Conventional loans:
Owner occupied: 3% with less then 10% down payment and 6% with 10% or more down payment.
Investment properties: 2% regaurdless of down payment percentage.
  • November 17 2011
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Profile picture for Sharon Lewis
You mean if the seller pays closing costs? There are certain items allowed to be paid, and if there is money left over it goes back to the seller, is that what you mean
  • November 17 2011
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