November 8, 2010
When a buyer applies for an FHA mortgage to pay for a new home, they’re required to pay a variety of fees associated with getting the loan; there are closing costs, fees, and mortgage insurance premiums to consider.
In many cases, the seller might try to make the sale of the home more attractive to potential buyers by offering to pay some of these fees including discount points and closing costs.
Contributions can go a long way toward helping a first time home buyer afford that first home; closing costs and related fees do start to add up. A smart seller knows this and can make their property much more attractive on the market by offering a contribution towards those closing costs.
The seller may anticipate doing this and include some of that contribution in the cost of the home, but even so the buyer won
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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