What is the maximum seller contribution with a conventional loan?

I am taking a loan via Bank of America, Conventional, Uninsured.
I may accept government bond or put the extra money down.
House price: 190,000
Bond: 10,000
Approved for Loan of: 150,000

What is the maximum seller contribution in terms of concessions and closing costs?

If this rate changes based on a bond, please explain.

10 points!!!!!!!!!!!!!!!!!!!!
We are giving more than 20% down including bond, grant, downpayment. We are getting a grant for 20,000 as well and that goes directly toward the downpayment.

3 Comments

  1. knowitall says:

    Usually a conventional loan requires 20% down from buyer. If the seller is willing to take back a purchase money note for the difference , they can do for whatever they want, as long as the bank’s loan is no more than 80% of the appraised value. It is possible you are getting in over your head if you were approved for only $150,000.

  2. Ed Atun says:

    The absolute limit is 6% of the purchase price. But conventional loans are much more varied. It may be that your bank will require that you put 6% more cash down in order to allow the maximum concession.

    4 years ago you could put 5% down and get 6% concessions. Now the concessions drop as the down payment drops.

  3. loanmasterone says:

    Your loan program will determine the contribution that a seller can make toward the down payment, closing cost. Some will allow up to 6%, but you must be in the transaction with a certain minimum amount.

    You should ask you loan consultant about what program you are approved for.

    As it is now you are approximately $40,000 away from the sale price. The lender Bank of America will only give a certain percentage of the $150,000 that you are approved for.

    Bank of America will give you approximately 80% of the sale price of the property you are trying to buy, unless you are approved for a special loan program offered by Bank of America.

    So in order for this to work you will have to come in with the additional amount of money even before you can consider any type of what your lender would allow as far as concessions that they will allow.

    If you do not have the $40,000 you should consider a property that is valued around the loan amount that you have been approved for.

    I don’t understand about the bond, so I am thinking that might be a first time home buyer program available in your city or county.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

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