Daniel, a Texas license holder, is assisting a veteran buyer with a VA loan. The seller has agreed to pay 4% of the purchase price toward the buyer's closing costs. Under VA regulations, is this seller contribution permissible?
Correct Answer
C) Yes, the 4% contribution equals the VA's maximum allowable seller concession limit
VA regulations allow the seller to contribute up to 4% of the purchase price toward the buyer's closing costs and concessions. A 4% contribution is at the maximum but permissible.
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A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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