Under the new rules, can a seller still offer concessions to help buyers with closing costs?
Question & Answer
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No, all seller concessions are prohibited
This option is incorrect because seller concessions have not been completely prohibited. While there may be restrictions on how they are advertised or disclosed, sellers can still offer concessions to help buyers with closing costs.
Yes, seller concessions for closing costs are still permitted
Only for FHA buyers
This option is incorrect because seller concessions are not limited to FHA buyers. They can be offered in any type of transaction, regardless of the buyer's loan program, though specific limits may vary by loan type.
Only up to $5,000
This option is incorrect because there is no universal $5,000 limit on seller concessions. The allowable amount varies based on loan type, loan-to-value ratio, and other factors specific to the transaction.
Why is this correct?
Seller concessions for closing costs are still permitted under current regulations. While recent changes may restrict how these concessions are advertised (such as not allowing them to be listed on the MLS), the practice itself remains legal and is a common negotiation tool in real estate transactions.
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