Thursday, January 29, 2009

Las Vegas Homes - Allowable Seller Concessions

How much can you ask the seller to pay on your behalf when purchasing Las Vegas homes for sale? The seller can actually contribute up to 9% in closing costs on a conventional loan if the you are putting up a large down payment! Below are the current allowable costs that the seller can pay on behalf of the borrower depending on which kind of loan the borrower is obtaining and the total down payment.

1. When it is an FHA loan, sellers can give up to 6% of the sales price towards buyer’s closing costs.
2. When it is a VA loan, sellers can give up to 6% of the sales price towards buyer’s closing costs depending on how the contract is written.
3. When it is a conventional loan on a primary residence or 2nd home the seller can give up to 3% of the sales price towards buyer’s closing costs if the buyer is putting 10% or less down.
4. When it is a conventional loan on a primary residence or 2nd home the seller can give up to 6% of the sales price towards buyer’s closing costs if the buyer is putting 10-25% down
5. When it is a conventional loan on a primary residence or 2second home, the seller can give up to 9% of the sales price towards buyer’s closing costs if the buyer is putting more than 25% down
6. If you have an investor purchasing a home, the maximum seller contribution is 2% of the sales price.

With the Las Vegas real estate market heating up and all the fantastic deals on Las Vegas foreclosures that are currently on the market, not only can we find some great buys, we can use these seller concessions to buy down the interest rates as well. Call our office now at 702-985-7654 to get prequalified for a mortgage and see how much money you can save on your closing costs.

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