To my surprise, I found out the hard way recently that one of my three lenders has, or NEVER has, stopped allowing seller credits. They require seller concessions instead.
In other words, if a mobile home is in escrow at a contract price of $50,000, and there is a $5,000 seller credit for closing costs, then the lender requires that the price be dropped to the actual amount that the seller is receiving. In this case, the price would have to be dropped to $45,000.
The lender wants the contract price to accurately reflect the actual amount that the seller is getting (not adjusting for real estate agent fees).
The reason: I believe that the bank feels that seller credits artificially inflate the true sales price. This bank is a market leader in this niche, and they don't want prices to be artificially inflated.
This will be a trend for other lenders to follow......
Call me any time for advice on mobile home loans: 800-401-3372
Subscribe to:
Post Comments (Atom)
If you purchased your home during a time when mortgage interest rates were high, you have probably considered refinancing your home mortgage for a cheaper rate. In recent years, interest rates have dropped significantly.
ReplyDeletehome loan