Fannie Mae and Freddie Mac have recently changed guidelines regarding seller contributions.
If you are purchasing a second home that is not your primary residence, the seller can not contribute more than 2% of the purchase price toward buyer closing costs. In other words, if an investor purchases a home for $150,000, the seller cannot give the investor more than $3,000 to use toward closing costs.
This new guideline will probably impact new investors the most since they will need to bring more cash to the closing table in addition to their down payment. Most lenders require a minimum 20% down payment on investment properties.
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This entry was posted on Sunday, January 24th, 2010 at 4:54 pm and is filed under Investors. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
