Sellers may offer concessions to incentivize buyers to purchase the home or sweeten the deal. There are usually limits to what a seller can contribute, which will vary based on the type of loan. Typical seller concessions for an FHA loan may include:
- Loan discount points, also known as interest rate buy downs, are fees paid to the lender to decrease the mortgage interest rate.
- Home warranties, or insurance plans, cover home repairs for a length of time after the home purchase.
- Closing cost assistance, where they provide a certain amount of cash to assist buyers in paying closing costs, which can be 2 to 5 percent of the purchase price.
- Credits at closing for HOA fees or outstanding repairs, offered as cash given by the seller to the buyer.
The Right Agent Every Step of the Way!
Hot Springs Village Real Estate