FHA vs Conventional Tip #1 - 08/06/09 01:11 PM
FHA guidelines will allow the seller to pay up to 6% of the contract price toward purchasers closing costs, pre-paids and discount points.
Conventional guidelines will allow the seller to pay up to 3% of the contract price toward purchasers closing costs, pre-paids and discount points.
This is very important for the first time homebuyer purchasing homes below $150k.  I recently had a client approved for FHA financing but the property was not FHA approved.  Client had enough money to put a 5% down-payment and qualified for conventional, except...the seller could now only pay 3% of closing which left a shortfall … (3 comments)

 
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Valerie Springer, Home Loan Officer AL FHA, VA, Conventional and Reverse Mortga

Birmingham, AL

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Network Funding Residential Mortgage NMLS 2297

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