Seller concessions (proposed)6 of 8The FHA is considering a move to limit seller concessions.Old rules: Sellers could kick in up to 6 percent of the home's selling price in cash.Proposed rules: Sellers would be limited to 3 percent in cash concessions. Anything more would have to come in the form of a price reduction on the house.What you need to know: This "could potentially" make FHA loans more popular with sellers, Nicholas says.This proposal is under consideration and appears likely, Bott says. Expect a decision by the end of 2010. Related Articles:FHA may curb seller helpHow to kill a loan closingLenders want tax returnsUsing the mortgage GFERelated Links:Fixing 3 FHA loan snagsFHA allows house flippingFHA loan costs risingWhat to know on FHA loan advertisement
The FHA is considering a move to limit seller concessions.
Old rules: Sellers could kick in up to 6 percent of the home's selling price in cash.
Proposed rules: Sellers would be limited to 3 percent in cash concessions. Anything more would have to come in the form of a price reduction on the house.
What you need to know: This "could potentially" make FHA loans more popular with sellers, Nicholas says.
This proposal is under consideration and appears likely, Bott says. Expect a decision by the end of 2010.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
Feeling lost in the mortgage wilderness?