Do I Have to Pay Closing Costs?

by Tim Hart | Jun 10, 2018 4:44:00 PM

You Can Have the Seller Pay Your Mortgage Closing Costs!

Closing Cost Options are Limited Since you are out looking for a house and have been pre-approved by us, you will want to understand how closing costs will be paid.You have a few options for your closing costs to be paid, either by the seller through the sales price or by the buyer with their own money.Try to Have the Seller Pay For Your Closing Costs

Closing Cost Questions

The ideal situation would be for the seller to pay the buyers closing costs but sometimes the seller will not agree to pay them, and they don't have to.

Depending upon what type of loan you are approved for, the lender will only allow the seller to pay a certain percentage of the buyers closing costs.

Option #1- Seller Paid Closing Costs 
FHA Mortgage and VA Mortgage– Seller can pay up to 6% of the buyers closing costs. Example: Sales Price is $100,000 and the seller can pay up to 6% of the buyers closing costs. That 6% will equal $6,000 to be paid towards the buyers closing costs. Conventional Mortgage– The seller is only allowed to contribute 3% towards the buyers closing costs unless the borrower is using a down payment of 20% or more, then the seller paid closing costs can go to 6%.USDA Loans/ Rural Development– USDA home loans are very unique in that the seller can pay an unlimited amount of the buyers closing costs. If the seller will not pay any of the buyers closing costs the buyer will be able to add the closing costs to the sales price to be financed with their total loan amount.


Option #2- Buyer Paid Closing Costs

You pay for your closing costs. Not too many choices here! The buyer pays for their closing costs with their own money or with a gift from a family member.When you are trying to obtain a mortgage, we would prefer that you use your money for a down payment over paying for closing costs.Paying for your own closing costs will give you a better chance of having your contract accepted.


The majority of this work begins with choosing the right Realtor that understands how to negotiate your sales contract so you can get your piece of Florida Real Estate!

Born and raised in Southwest Florida, I have been in the Mortgage business since 2001 I'm a grizzly, battle tested mortgage veteran. I am also the Host of Rates & Reels, which is the most popular fishing show in Southwest Florida, hosted by a guy named Tim. In my spare time I love spending time with my family, coaching baseball, and anything else my kids or wife want me to do. I would be happy to help you or someone you know with any of your Mortgage needs.

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