closing costs are a negotiated term. they can be paid by whomever is contracted to do so. if the seller agrees, then so be it.
it can also be done by both parties paying a portion of closnig to divide the costs. they can be rolled into the loan, either with bank permission or not (it just takes a different strategy to accomplish this without permission but it is doable).
add closings costs into your Purchase and Sales Agreement and then explain how they will be divided up. this is strictly a negotiated term.
make the agreement read somethign liek this and you got it made:
“Seller to pay up to 6% of purchase price toward closing costs”
6%, by the way, is all FHA allows if you go with an FHA loan. but 6% usually will cover all your closing needs and have extra left over nuless you have terrible credit and are dealing with hard money lenders or something. now all yuo have to do is raise the purchase price by that 6% and the bank pays yuor closing costs and it is rolled into your loan, whether they like it or not. of course you will owe this back to the bank with interest, but it saves you costs at the closing table.
you could also word it that seller pays up to a cetain price, like 3K or something, that is all in the negotiations of the contract.
Here is the situation, my parents are about 2 years form retirement and they both got laid off from their jobs. We live in a property that is values at about 180,000. They owe about 120,000 on the mortgage (don’t ask). What is the best way they can sell me the home so that I can own it and pay off about 10,000 dollars in CC bills at the same time. My income is about 50,000yr and my debt ratio is 28%. I do not want to tie up any cash down on the purchase. Your help will be greatly appreciated.
you have a few options here. you can just do a subject to if you want to and just keep up the payments. thats the investnig answer. you get in for nothing down.
with your income and debt numebrs, assuming your credit is OK, you can easily get an FHA loan for 100% of the purchase price. you can either just borrow pay-off or borrow extra to cash your parents out of the house. that is between you and your parents.
you wont have any trouble getting this done im sure.
Your house FMV is $180k, what do you owe?
Your parents owe $120k on their house, how much is their FMV?
How much do your parents want to sell you their house for?
With the above information, there could be a solution.