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FHA Seller Paid Closing

Sometimes the seller or other third party will contribute to the sale price of the property, by paying a percentage of closing costs, prepaid items, discount items, or other costs. The FHA mortgage  program does put a limit on how much they may contribute is 6%. Any seller paid closing cost over and above this 6% requires a dollar-for-dollar reduction to the property’s sale price that will be applied before calculating the loan-to-value ratio.

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