Question: Our client is purchasing a condo with a special assessment of $16,000 due 2 weeks after closing. Our sales contract states that the seller will pay this assessment, but we are concerned this may be viewed as an Interested Party Contribution. What is your opinion? MC Chart – Interested Party Contributions Answer: Yes, this […]
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Answer: Yes. The selling agent can contribute to the buyer’s closing costs as long as the contribution complies with the Interested Party Contributions guideline shown below. Reference: 4000.1 II. A. 4. d. iii (G) Interested Party Contributions (TOTAL) (1) Definition: Interested Parties refer to sellers, real estate agents, builders, developers or other parties with an interest in […]
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Answer: Fannie Mae restricts the use of commission for down payment but could use the commission for closing costs. And yes, the agent / borrower should be able to show sufficient funds to close without counting the commission. That use of the commission for closing costs would count towards the limit on interested-party contributions. The […]
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