Zillow Advice: Buying Process - question about seller covering closing and downpayment cost

$150 k will be your price. ...

Wed, 31 Dec 2008 22:51:00 GMT

$150 k will be your price. Basically you are subsidizing their $9000 with your mortgage, and will be paying for it for the next 30 years. I'd prefer to pay for it out of pocket and have it done with, and get a lower price on the house.

What sort of financing are you coming up with? 3.5% down payment from your pocket (or 3.0% if before Jan 1) is required for FHA. This is not from the seller. For other loans, some lenders are requiring more.

Good answer Joe! Both the ...

Wed, 31 Dec 2008 20:29:00 GMT

Good answer Joe! Both the real estate agent and the mortgage person were off base.Â

Both are wrong...You are ...

Wed, 31 Dec 2008 19:35:00 GMT

Both are wrong...You are getting the house for $150,000. The seller is payinng $9000 towards your closing costs and prepaids. That money can not be used as a down payment. I assume with that size of a concession, you are doing an FHA loan. You will still need to come out of pocket with the 3.5% down payment (as of case numbers issued after Jan 1).