What Closing Costs Can the Seller Pay?       

Many buyers (particularly first-time buyers) are short the cash they need for the down payment and closing costs. One way to overcome this cash shortage is for the seller to pay a portion of the closing costs. How much the seller is allowed to contribute depends on the type of mortgage loan.

Conventional Loans
Depending on the program available to you, a Seller can pay as much of the closing costs as needed to secure your financing. Many times this can also include pre-paid items or escrow which, include taxes and insurance. This means that if neccessary, it is possible that you could purchase your new home without any money out of pocket.

Asking the Seller to Pay a Portion or All of Closing Costs

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

As your real estate agent, we will help you prepare an offer that balances the purchase price and 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.