Can you get seller concessions on an FHA 203K loan?
It is a fannie mae property and I need to put down 13.5% because I am using a grant. The home is $65k + $5k in rehab, it doesnt need that much work.
The problem is that I only have about $13k of the needed 17k, can you also get seller concessions? Seems strange to get seller concessions when you are already getting 5k for the rehab. Any help would be appreciated
If you have pre-approval on your loan, I would call your lender and ask them what the limits are for seller concessions. Most likely (not sure what NY laws/customs are), any credits will need to be conceded as going towards closing costs. You may also be able to ask the seller to complete repairs noted by the FHA appraiser and then no money would necessarily change hands in your deal, but you would not have to pay all of that 5k in repairs. If your agent and the listing agent can come to terms on behalf of you and the seller in this fashion it could still be possible. But again, I would start with your lender to understand the limitations on what is allowed for your particular loan product before asking the seller for further negotiations/concessions.
Hope this helps. Best of luck!
FHA will normally accept seller concessions of up to 6% for closing costs and prepaids.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.