As the availability of money fluctuates, so do the points lenders require to place their money in the home mortgage area. Points needed to obtain FHA, VA or Conventional financing may be paid by either the buyer or the seller, and are therefore negotiable. FHA, however, limits the seller contribution to a maximum amount of points. Even though negotiable, in many instances buyers cannot afford financing a given house if they must also pay points. Therefore, sellers often see their best interests being served by agreeing to pay some or all of the points needed to make the sale.
Points are tax deductible for the borrower whether they are paid by the buyer or seller paid.
There are some limitations to the amount of seller contributions under all programs. For more information consult your Burnet Home Loans Loan Officer. Closing Costs Closing costs vary slightly with various loan programs. The chart below will illustrate the breakdown of items included. The prepaid expenses include interest paid from the day of closing to the end of that month.