2006-12-11 06:04:16 · 7 answers · asked by Courtney V 1 in Business & Finance ➔ Renting & Real Estate
Seller concession, if you have them pay closing costs instead of down payment, you'll be much better off. Most lenders won't allow them to pay your down payment, but will allow seller paid closing costs...Sellers concession towards closing costs.
2006-12-11 06:15:50 · answer #1 · answered by Anonymous · 1⤊ 0⤋
They're called "Seller concessions".
What the previous guy said is actually a second carried by the seller rather than a bank where you would pay them like a regular loan.
They can actually cover a down payment, but there are limits on how much and it has to be done a certain way.
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2006-12-11 14:16:11 · answer #2 · answered by Jeff 3 · 0⤊ 1⤋
Are you really asking them to help with the down payment, or do you just mean help with the closing costs?
Downpayment can be a lot of money - tens of thousands.
Closing costs are sometimes picked up by the seller, or split with the seller, and it varies by the property, of course, but you're talking a couple of thousand dollars, not fifty thousand. That's much more common to split the closing costs or put down X $ toward closing.
2006-12-11 14:15:00 · answer #3 · answered by T J 6 · 0⤊ 1⤋
Illegal.
The seller can't actually make your down payment. They can carry a second, the can contribute some toward your closing expenses. They can even "give" money to a non profit organization which then "gives" you money for your down payment (legal money laundering), but they cannot make your down payment.
2006-12-11 16:14:21 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋
Its called soft money financing.... no money actually exchanges hands, but the seller acts as a private investor and gives you a second mortgage. These are usually high interest, interest only loans with balloon payments.
2006-12-12 02:13:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Seller carry-back. They aren't really making the down payment for you, but they are acting as the second mortgage lender for you. You would be borrowing from them and making monthly payments to them
2006-12-11 14:07:38 · answer #6 · answered by Anonymous · 0⤊ 2⤋
a sellers concesion will cover closing costs. but not the DP, you need a GIFT OF EQUITY, but you cant have one unless the house is being sold to you by family
2006-12-11 14:15:56 · answer #7 · answered by David P 2 · 0⤊ 2⤋