Fannie/Freddie/FHA/VA/USDA

Maximum Seller Contribution Chart

 With all the mortgage rules changes, I know it’s difficult to keep updated on exactly how much money a seller can contribute to helping a client buy a home.  Here’s a handy chart that covers all the loan programs and the percentage the seller can pay.

	FNMAFHLMC	FHA	VA	USDA
Owner OccupiedLTV/CLTV90.01 or greater 75.01 to 90.00 75.00 or less	3%6% 9%	6%Maximum all loans	4%Closing cost & pointsPlus up to 4% sales concession Total: 8%	No Seller Contribution Limit*Closing cost can also be financed up to 100% of appraised value.
Non-Owner Occupied	2% Maximum all LTV’s	N/A	N/A	N/A
FNMAHomepath	Follow standard maximum’s with the exception of LTV’s over 90% allow up to 6% concessions	N/A	N/A	N/A

          *Some investors have an internal policy limiting seller contribution to 6%

Rules When Selling a Home if in Foreclosure Redemption Period

Be careful when listing a home, going thru the foreclosure process and is currently in a “redemption period”. A redemption period is the time given to the property owners to come up with ALL of the money to pay off the balance of their mortgage, the attorney fees and any unpaid interest.

Yes, you can sell the home during the redemption period, but the following conditions must apply:

1. Property must be in a state where it is common & customary to sell a home in redemption.

2. Title insurance must contain a specific exception for the right of redemption and insure
against all loss arising out of the exercise of an outstanding redemption.

3. If redemption is exercised, the mortgage must be paid off directly out of the redemption
proceeds with no further action or claim for repayment.

4. The lender must warrant that Fannie, Freddie, FHA and VA will not incur any loss.
Each state has its own laws regarding foreclosure and redemption –this can be a tricky
business.