Question

For a conventional, conforming loan, the borrower is making a down payment of 12%. The seller wishes to contribute to closing costs for the transaction. What is the most that the seller can contribute

Answer 1

In such a scenario, the most the seller can contribute to the closing costs is up to 6%.

When can seller contribute to closing costs?

• The borrower must make a down payment of an amount between 10% and 24.9%.
• The loan must be conforming.

As the down payment of 12% falls within the 10% and 24.9% range, the seller can make a contribution of up to 6% should they please.

In conclusion, they can contribute 6%.

Find out more on conventional loans at brainly.com/question/1130069.