Posted by Bruce Barilar on July 11, 2002 at 22:22:49:
Dave, GOVT 30 would be for a 30 year mortgage. As A Seller you may be required to pay an FHA administration fee, about 490.00 in my area. You would also have to make sure the house meets FHA requirements. An Appraisal will be done by an FHA certified appraiser who will provide the lender, buyer and you with a VC sheet, or Visible Condition sheet. This VC sheet will tell you what must be done to the house in order for FHA to insure the buyers loan (allow it to close and fund). The only way you as a seller would pay a portion of the buyers closing costs, discount points or prepaids would be if you had agreed to do that in writing with the buyer in your sales agreement. This is not uncommon as many buyers who use FHA programs use them because of the low down payment requirements and because they allow up to 6% of purchase price for seller help towards buyers closing costs. I usually do it if it helps me move a house, get my cash and go to the next deal. I pay attention to the numbers, but I do not trip over nickels on my way to making dollars!
Hope this helps.