Town of Ledyard Meeting Schedule
Town of Ledyard Meeting Schedule

Seller Paying Buyer Closing Costs

Keith-TurnerI received this little cheat sheet from Keith Turner from McCue Mortgage and I thought it was a good one to share with Ledyard buyers and sellers.  When negotiating an offer, buyers often ask sellers to assist with closing costs. While this is a good way to get help with a home purchase, there are limits of how much money the seller can contribute.

FHA – 6%

VA – 4%

USDA – 6%

Conventional (with less than 10% down payment) – 3%

Conventional (with 10% down payment or more) – 6%   

CHFA/HFA (with less than 10% down payment) – 3%

CHFA/HFA (with 10% down payment or more) – 6%

*CHFA doesn’t have any overlays/limits themselves.  They will just follow the insurer, so for CHFA/FHA the limits follow the FHA rule of 6%, for CHFA/VA they follow the VA rule of 4%.

So for example: with a Sales Price of $100,000 on an VA mortgage, the seller can only contribute up to $4,000 towards your buyers closing costs.

Thanks Keith!

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