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.
The Right Agent Every Step of the Way!
Hot Springs Village Real Estate