Can You Get Seller's Assist on a Conventional Loan?
If you are planning to buy a property, getting a conventional loan is one of the options you can consider. This type of loan is not backed by the government, unlike FHA loans and other programs. While it offers various benefits, such as flexible terms, lower interest rates, and higher borrowing limits, one of the questions that many buyers ask is whether they can get seller's assist on a conventional loan.
What is Seller's Assist?
Seller's assist refers to the money that the seller gives to the buyer to cover the closing costs. These costs can include origination fees, appraisal fees, title insurance, and other expenses that come with buying a property. Typically, the seller's assist can range from 3% to 6% of the purchase price, depending on the agreed-upon amount between the buyer and the seller.
Can You Get Seller's Assist on a Conventional Loan?
The answer is yes. It is possible to get seller's assist on a conventional loan; however, there are some restrictions that you need to know. According to the guidelines set by Fannie Mae and Freddie Mac, the two main entities that back most conventional loans in the United States, the maximum seller's assist allowed for a buyer who puts less than 10% down is 3% of the purchase price. If the buyer puts down more than 10%, the seller's assist can increase up to 6%.
Benefits of Getting Seller's Assist on a Conventional Loan
There are several reasons why buyers choose to get seller's assist on a conventional loan. Below are some of the benefits:
How to Get Seller's Assist on a Conventional Loan
If you are interested in getting seller's assist on a conventional loan, here are the steps you need to follow:
Find a lender who offers conventional loans. Mortgage Brokers Pro is one such company that provides high-quality mortgage services and can help you navigate through the process of getting a conventional loan.
Determine how much seller's assist you need. Make sure to factor in all the closing costs and other expenses that come with buying a property.
Negotiate with the seller. You need to agree on the amount of seller's assist upfront before you close the deal.
Include the seller's assist in your loan application. Your lender will factor in the seller's assist when determining your loan eligibility.
Close the deal. Once everything is agreed upon, you can proceed to close the deal and get the keys to your new home.
In conclusion, getting seller's assist on a conventional loan is possible, but there are limitations. If you are interested in this option, it is essential to work with a reputable lender such as Mortgage Brokers Pro that can provide you with the guidance and expertise needed to navigate the process successfully. With seller's assist, you can reduce your upfront costs, increase your purchasing power, and gain a competitive advantage in a competitive real estate market.