moveright 0 Report post Posted September 12, 2011 Was speaking to a prospective seller yesterday and she asked "how do you come up with your fee?". I told her it's generally 3.5% of the purchase price. But, then she asked "why"? I told her it's because FHA requires 3.5% down on purchases. Anyhow, the questioning about my fees stopped there but then that gave me a question! Does the TB's option consideration count toward a mortgage down payment? If it doesn't, then it seems like the TB would have to come forward with a TON of cash. 1) 3.5% (or whatever) option consideration at move in2) First month's rent at move in3) 3.5% (assuming FHA) down payment at closing4) closing costs (about 3% in general?) at closing off topic: I've had some pretty curious seller conversations lately. Craigslist has not proven to be a good resource. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 12, 2011 Does the TB's option consideration count toward a mortgage down payment?It all depends on the chosen lender and their rules regarding this. Another factor is the applicant's personal credit and employment history, as well as their income, debt ratios, etc.What every t/b ought to do is to begin the financing application part in month two rather than month twelve. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted September 12, 2011 It really depends on the competence of the loan officer....With our clients, the option fee is applied to the 3.5% required by FHA. The rent credits are applied to closing costs Share this post Link to post Share on other sites