Charleston, SC · Member since 2014 · 59 posts · 23 votes
So I bought a property for 72k and seller to pay all closing cost. When time to close rolls around, my loan officer tells me seller can only pay 2%max as of May1st2017. Bc the contract language said the seller was to pay "up to 6%" they are now saying they will pay 2% and that's it. A- I'm frustrated with my agent for not knowing that B- I'm frustrated for the language my agent used in the contract and C- I'm frustrated at my loan officer for telling me 1 day prior to closing. It's a lesson learned and shame on me for not knowing but am I right to be upset with my agent and loan officer????
I can't back out bc I lose my earnest money. Tried get price reduced but seller says no. Looks like im stuck!
Is this for the rental property you've been searching for?
It's 2% max seller concessions for "investment" properties for conventional loans. It's been this way a long time. I've got a selling guide from 2007 with the same numbers. Did they think you were going to live there?
On primary residence homes:
3% for LTV greater than 90%
6% for LTV 75.01%-90%
9% for LTV 75% or less
It's up to 6% for FHA if you plan to live there as a primary residence.
Is this for the rental property you've been searching for?
It's 2% max seller concessions for "investment" properties for conventional loans. It's been this way a long time. I've got a selling guide from 2007 with the same numbers. Did they think you were going to live there?
On primary residence homes:
3% for LTV greater than 90%
6% for LTV 75.01%-90%
9% for LTV 75% or less
It's up to 6% for FHA if you plan to live there as a primary residence.
Yes it's for a rental and both my agent and loan officer knew that. Sounds like both of them don't know their craft all that well.
Time for a new agent and mortgage company...
Don't blame the agent. Different lenders have different criteria. Some will do 3.5% some will do less, but all lenders have a limit and it can vary if it's an investment or your primary residence. Next time, don't ask for a lower price, ask for a repair allowance at the closing. You would be borrowing some of the repair costs. And believe me, there are always repairs that need done.
IPCs that exceed these limits are considered sales concessions. The property's sales price must be adjusted downward to reflect the amount of contribution that exceeds the maximum, and the maximum LTV/CLTV ratios must be recalculated using the reduced sales price or appraised value.
With 30 seconds of time and google, I looked that up so I would assume the lender should know that (and not tell me that they just changed it in May of this year). Looks like it has had a 2% max for some time now!