Can The Seller Pay For The Buyer's Closing Costs? 

After making the initial Down Payment to secure a Lease Purchase home many Lease Purchase and Rent To Own Buyers are short the cash they need for closing costs to close on the property when the time comes. One way to overcome this cash shortage is for the Seller to pay a large portion of the Buyer's closing costs at the closing table. How much the Seller is allowed to contribute depends on the type of mortgage loan you will get in 6-24 months.

If you watch the nightly news you already know that the Banking Industry is going through a time of "reform". The rules and amounts of "Seller Concessions" vary a bit depending on the type of loan you will be getting. It is commonplace in today's Real Estate Market however for the Seller to pay for a large portion of a Buyer's closing costs, and in many instances almost all of the Buyers closing costs. Our state licensed Mortgage Brokers take into account each individual Client's needs then reccommend the loan program(s) that will be the best solution and meet the Client's needs.

Asking The Seller To Pay For Closing Costs

The Seller's willingness to contribute to a Buyer's closing costs is often driven by market conditions and the way in which the request is made to the Seller.

As your representation, we will help you prepare an offer that balances the purchase price and your request for closing cost assistance with the dynamics of the current marketplace. For instance, in a Seller's market we may increase the offered purchase price to offset the request for closing cost assistance. Conversely, in a Buyer's market we may prepare an offer that asks for a slightly less than market value purchase price plus Seller paid closing costs.

Remember - When you ask the Seller to pay a portion or all of your closing costs, in essence you are financing the closing costs. This is because the Seller's contribution is typically offset by a higher purchase price. And it is this higher purchase price that is financed with your mortgage loan.