One of the biggest hurdles for first time buyers is saving enough money for a down payment and closing costs. Luckily, there are a number of ways to afford closing costs a bit more easily, and utilizing a seller’s assist is one of the most popular options. In fact, nearly half of all EveryHome buyers purchase their home using a seller’s assist!
A seller assist refers to the seller paying for a portion of the buyer’s closing costs at the settlement table. The seller assist is negotiated when an offer is presented. For example, if you offer a sale price of $200,000 for a home, you may also request a $5000 seller’s assist (where the sellers will pay for $5000 of your closing costs). In this case, the seller would net $195,000. This is important to keep in mind when presenting an offer, as the seller’s ultimate concern will be the net sale amount.
There is a limit to the seller assist amount. If you’re using an FHA mortgage, the maximum seller assist amount is 6% of the sale price. If you’re obtaining a conventional loan, the seller assist amount is capped between 3-6% of the sale price, depending on how much money you’re putting down. These limits are always subject to change, and we recommend that you speak to your EveryHome agent and lender for individualized information.