How much seller contribution is allowed on the FHA loan, and how do you calculate it?
FHA mortgages allow the seller to contribute 6% of the sale price, toward closings cost for the borrower. This means that you can take the sale price of the home, and multiply it by the sale price. This contribution can not be used to cover any part of the minimum down payment that FHA requires.
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[…] amount- FHA will allow for the highest seller contribution versus a conventional loan…FHA 6% seller contribution. FHA allows the seller to pay for up to 6% seller contribution. Most of the time, this makes it […]