What is this FHA Loan program? - Posted by Dave T

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.

What is this FHA Loan program? - Posted by Dave T

Posted by Dave T on July 11, 2002 at 17:32:28:

Today, a buyer for one of my properties gave me a Loan Commitment Letter for an FHA loan. The blank on the form labelled “Loan Program” has the entry “GOVT 30”.

Can anyone tell me what FHA loan program the buyer has a commitment for, and whether this program would require the seller to pay any of the financing, settlement, and closing costs on behalf of the buyer?