Points

[rjordan392]

What is the name of your state? Pennsylvania.
Is it true that in certain real estate loans, such as FHA and VA, the seller pays the points? The seller is already paying about 6% for commission and it does not seem fair.
What would be a sellers options?

 

[PghREA]

What is the name of your state? Pennsylvania.
Is it true that in certain real estate loans, such as FHA and VA, the seller pays the points? The seller is already paying about 6% for commission and it does not seem fair.
What would be a sellers options?

There are a few minor costs associated with FHA and VA loans that the seller may be required to pay but, points isn't one of them.

Your option, don't accept a contract that uses FHA or VA as a financing contingency.
Also, everything in the contract is negotiable - refuse to pay points for your buyer.

 

[HUD-1]

Not accepting a contract because it is FHA may be bad advice. Under the FHA loan, the seller is not required to pay any of the buyer's costs. (including points). The seller can pay up to 6% of buyer's closing costs if they so choose. It is not mandatory. Everything is negotiable, even the real estate broker commission.

 

[rjordan392]

Ok, but lets narrow this down a bit.
What would suit the sellers best interest in accepting a buyer using FHA, VA or Conventional mortgage loan? Pro's & Con's.

 

[HomeGuru]

Ok, but lets narrow this down a bit.
What would suit the sellers best interest in accepting a buyer using FHA, VA or Conventional mortgage loan? Pro's & Con's.

**A: getting the property sold.

 

[rjordan392]

I need something besides that.

I believe the FHA and/or the VA have certain requirements not only to the borrower but to the house for sale as well. Am I correct? That is why I asked the above questions.

 

[HomeGuru]

I need something besides that.

I believe the FHA and/or the VA have certain requirements not only to the borrower but to the house for sale as well. Am I correct? That is why I asked the above questions.

**A: www.hud.gov