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bryan.owens@benc
223 Posts |
 Posted - 03/04/2008 : 2:36:34 PM
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I need a program that allows 6% seller contributions
Maryland
purchase
employer is kicking back all closing costs.
who can do this?
Let me know
email bowens@nmsinc.us or call 410-273-6400 ext.111 |
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EquitySmart
840 Posts |
Posted - 03/04/2008 : 2:43:01 PM
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| Normal prime guidelines allow up to 6% seller concessions if LTV is between 75% and 90%, and 3% seller concessions if LTV is higher than 90% - you may need to find a portfolio lender to get 6% concessions if LTV is higher than 90% |
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bryan.owens@benc
223 Posts |
Posted - 03/04/2008 : 2:46:32 PM
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quote:
Originally posted by EquitySmart
Normal prime guidelines allow up to 6% seller concessions if LTV is between 75% and 90%, and 3% seller concessions if LTV is higher than 90% - you may need to find a portfolio lender to get 6% concessions if LTV is higher than 90%
is there a lender that will treat employer contributions as gift funds, instead of seller contributions? |
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EquitySmart
840 Posts |
Posted - 03/04/2008 : 2:49:30 PM
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quote:
Originally posted by bryan.owens@benchmarklends.com
is there a lender that will treat employer contributions as gift funds, instead of seller contributions?
bryan.owens - does the employer currently have ownership interest in the property? If so, then this would be counted as seller contributions (since the employer is the seller). If not, then they would have to meet normal guidelines for eligibility of giving gift funds (or possibly relocation benefits or something similar) |
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jkurland
261 Posts |
Posted - 03/04/2008 : 3:00:27 PM
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| FHA allows gift funds to be paid by an employer, but you better back it up with some serious documentation. |
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nutesch
396 Posts |
Posted - 03/04/2008 : 3:03:49 PM
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| Are you sure the employer is paying the closing costs at the time of closing? With Most relo's I've seen, the employee submits a copy of their settlement statement to the employer after they close and they are cut a reimbursement check. If this is the case, you shouldn't have any issues as long as you can verify the borrower has the money to cover the costs at the time of closing. |
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bryan.owens@benc
223 Posts |
Posted - 03/05/2008 : 05:36:23 AM
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the employer does not have ownership interest in the property.
Are you a prime lender?
Can you get this done? Can I have the employer cover all closing costs, even if they exceed the 3% seller concessions? It sounds like you are saying it doesn't matter because this is a gift as long as the seller does not have an interest?
Why is it that every other lender considers employer contributions/gifts as seller concessions?
call me at 410-273-6400 ext. 111 |
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EquitySmart
840 Posts |
Posted - 03/05/2008 : 07:30:15 AM
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bryan.owens - I am not a lender - I am branch manager for a broker
Employer contributions are clearly not the same as seller concessions (if the employer is not the seller) but it is possible your lender is combining these into a larger bucket = arms length concessions. Gift funds can normally only come from non arms length people (who are directly related to the buyer and thus have an interest in helping the buyer obtain the property). Perhaps your lender considers the employer to be arms length and is thus limiting the total arms length concessions (which would include employer contributions and seller concessions).
I have not done many loans with employer contributions, so I would suggest talking to the underwriting manager at your favorite lender to find out exactly what options you have here. Ask them very specific detailed questions. Good luck. |
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