Closing cost who pays what??

Home Forums Purchase Program Closing cost who pays what??

This topic contains 1 reply, has 2 voices, and was last updated by  TTrumble 1 week, 1 day ago.

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  • #40508

    TheWilliams
    Member

    Does the seller/builder pay anything and or are they required to pay a % percentage of closing if so what’s the percentage. I thought Naca covered closing if we ask for 4K towards closing can this be in turn be placed towards buydown funds. How much control do we have on allocation of funds besides the required taxes insurance etc paid up front. Also we are putting 5 k deposit to start the build is this factored into the buydown etc at closing. Just asking because we want this deal to work but it can’t if they have to pay 25k for us to get into the house because we are subject to Naca maximum acquisition cost of the area. Please let me know!!!!

    #40538

    TTrumble
    Member

    Hello TheWilliams,

    Sellers/builders are under no obligation to pay anything toward closing, buydown, etc.

    Under the NACA program, actual closing costs are paid by the bank. Not rolled into the loan or hidden somewhere else. The bank pays the closing costs, period.

    Any funds contributed by the builder toward “closing costs” will be applied toward interest rate buy down, up to a maximum of ten points (10% of the loan amount).

    The $5,000 deposit is considered “earnest money” and is refunded/applied at closing.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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