How much seller assist can i ask for

The seller assist may be necessary to help the buyer purchase the home. In many situations, home sellers will concede a seller assistance in lieu of a reduced sales price. How does the seller assist work?

The amount of the seller paid closing-cost cannot be outside of settlement. Is a seller assist a good idea? Every home-buyer is different. If you're scratching up cash to buy a house, then yes, a seller assist is a good way to reduce the amount of cash at closing.

Seller assist can be used to purchase discount points to lower the interest-rate. Is a seller assist tax deductible? The seller assist is not tax deductible. The cost is an ordinary expense on the sale.

What happens if the closing-costs are less than the seller agreed to pay? As stated earlier, the maximum seller assistance is limited to the amount stated in the sales contract.

If the closing-costs are less than anticipated, the seller gets to keep the difference. The calculators and information on this website are provided to you as a self-help tool for educational purposes only. Since every case is different, you should discuss your concerns with a tax advisor who can give advice based on your individual situation. Currently, the IRS only allows closing costs deductions on home mortgage interest and certain real estate taxes.

However, the mortgage interest tax deduction includes mortgage discount points — money paid at closing to get a reduced interest rate. A tax professional can go over these guidelines with you and help you steer through buying a home and taking on a mortgage, both of which come with their own sets of tax deductions. Our loan division can also help you with financing through our affordable mortgage packages. Primary Menu UpNest.

Search for: Search. When Do You Need One? Agents Compete, You Win. Yes it will cost the buyer a bit extra each month to finance the assist amount over the life of the loan, but an assist is often the only way the buyer can purchase the property. If a seller assist is part of the transaction the total purchase price, including the seller assist, must have enough value to justify the sale price. The price of the home must appraise with the seller assist included.

A seller assist can also be utilized to purchase mortgage discount points. This is where the seller assist is used to buy down the interest rate.