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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 118689
Experience:  Attorney experienced in commercial litigation.
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I am purchasing a house with an fha loan and the seller was

Customer Question

I am purchasing a house with an fha loan and the seller was putting 3500 towards closing costs, which included the appraisal. Mortage guy is saying that the buyer has to purchase the appraisal. Said the fha home loan requires buyer not seller to purchase the appraisal. Now he is saying the 3.5 percent down will not go towards principle. I draw social security and va disability and feel like he might try to use me and the 7K I am putting down, which I thought was going towards principle is not and he might take 3500 the seller was going to use towards closing costs pay for them with my 7k or the 3.5 down for fha and pocket the rest. He is saying the 7k is being used for closing and the sellers 3500 he might try to pocket?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
The seller can contribute up to 6% maximum towards your closing costs, which can include the costs of the appraisal. While you must arrange for the appraisal, the seller can contribute toward the appraisal cost and other closing costs as long as their contribution does not exceed 6% of the total price of the home. So this is something you do need to negotiate with the seller as to what they will contribute to the closing costs and anything from your $7000 that does not go to closing costs would go towards the principle of the home.