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.

Call RE/MAX of Hot Springs Village Today: 501-922-3777.

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Hot Springs Village Real Estate

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