Posted by jeff on July 19, 2002 at 19:54:13:
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.