David Saks: May 2008

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Contributions to Closing Costs : No Tax Deductions and Not Charity


When a buyer doesn't have all of the cash that they need to close, after they've coughed up the downpayment and other loan expenses, the seller might want to come to the rescue and make up the difference.

Can this be helpful to the buyer?

Can it be more helpful than reducing the price of the loan for the same amount as the contribution?

There are limits as to the amount of money that the seller may contribute to the closing costs of the loan.

When those limits are exceeded the amount of the loan can be cut back.

Seller contributions can also affect maximum loan amounts for FHA loans.

Can the seller hurt the buyer with a closing contribution?

What are your experiences with seller contributions and how have seller contributions impacted closing or changed the existing or pending financing arrangements for your buyers?

David Saks

Time&Temp Memphis

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Comment balloon 6 commentsDavid Saks • May 18 2008 04:37PM
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