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What is the maximum seller concession allowed to a buyer with a 5% down conventional loan

  • January 21 2013 - West Milford
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Answers (9)

Best Answer

3% on 5% down.  If your credit is good, stay away from FHA as much as possible.  There are other ways to structure the loan to account for any money that you are short for closing.  The mortgage insurance for a FHA loan is almost double that of a conventional loan with good credit
  • January 21 2013
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Your welcome, if you have any further questions don't hesitate and call. Enjoy the process!
  • January 22 2013
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Great answer Joe....you are so right about FHA. The fees are higher and a conventional loan is less. Also, ask the lender you are talking to for advise. They are the specialist in the field and they no better than anyone.
  • January 22 2013
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Profile picture for Lucy King
Thanks Gina that makes perfect sense.
  • January 22 2013
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3% seller concession for Conventional. LPMI is lender paid mi. Should you have the additional resources pay for the mortgage insurance upfront and take advantage of the lower rates.
  • January 21 2013
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LPMI is where the borrower takes a higher rate and in return does not have any monthly mortgage insurance.  If your credit is good, it is worth looking at and comparing to basic monthly MI.  Would be happy to show you some options.  Contact me through my profile
  • January 21 2013
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what is LPMI?
  • January 21 2013
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i agree with joe and with 5% down you should be able to do LPMI which will save you even more per month compared to either FHA or conventional with monthly MI.
  • January 21 2013
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3%.  Unless the buyer wanted to switch to an FHA loan.  then the seller could give up to 6%.
  • January 21 2013
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