Is it true that a seller can pay the buyers closing costs?
YES! If a borrower does not have enough money for closing costs, it is very common to negotiate within the sales price of the home to have the seller pay the borrower’s closing costs. Some banks limit the amount that a seller can contribute to 3% of the sales price, while others limit it to 6%. It really depends on the bank and the particular program. If the loan is an FHA or VA loan, there are limits on what the seller and buyer can pay for. Make sure to get accurate information from your broker on this.
