What do sellers concessions mean?
So you are you buying a piece of Canton Township real estate and you want to know what sellers concessions mean? If you are a Canton Township home buyer and you don’t have the enough money to buy a home. Sure you have the 3 1/2% that FHA requires, but you don’t have much more. And you can’t get more from any family members. So what do you do? You want to buy a Canton home but you don’t have the money. Yes you can still buy the home. The way it is done is by asking for sellers concessions. Seller’s concessions is when the seller pays for your closing costs. On a FHA loan you can get up to 6% of the purchase price to pay for closing costs. So if you are buying a $150,000 Canton home you can get 6% of $150,000. That is $150,000 x .06 = $9000. But you have to remember when you ask for sellers concessions it is coming out of the seller’s bottom line. So if you offer $150,000 on that Canton ranch home the seller is only going to get $141,000 because he is giving you $9000. So take this home
