Closing costs
Lender and title fees, recording, Florida's documentary stamps of $0.35 per $100 on the note and 0.2% intangible tax, prepaid insurance and escrow. Pricing adjustments based on score and down payment show up in your rate or as points.
Seller concessions
| Your down payment | Seller can pay up to |
|---|---|
| Less than 10% | 3% of the price |
| 10% to 25% | 6% |
| More than 25% | 9% |
| Investment property | 2% |
Temporary buydowns
A seller credit can fund a temporary buydown, where your rate starts lower for the first year or two, then steps up to the full rate. It lowers early payments while you settle in. You qualify at the full rate, so it doesn't help you qualify for more, but it can be a smart use of seller money. Compare it with a permanent buydown using the true cost of a mortgage.
How I use seller credits
When a seller offers money, I run three options for my clients: closing costs, a permanent rate buydown, or a temporary buydown. The best choice depends on how long you'll keep the loan, the same principle behind everything I do: the cheapest mortgage for the life of your loan, not just the lowest rate.
Your monthly payment
Principal and interest, taxes, insurance, PMI if under 20% down, and HOA or CDD fees.
Conventional payment and cash to close
Estimate for a 30 year fixed loan on a primary home. Flags seller credits above the limit.
Using the full seller credit
Nina put 5% down, so the seller could contribute up to 3%. The seller paid her closing costs and part of her prepaids, and her cash to close was close to her down payment.
Frequently asked questions
How much can a seller pay on a conventional loan?
3% with less than 10% down, 6% with 10% to 25%, 9% above 25%, and 2% on investment property.
What are typical Florida closing costs?
Title, lender fees, Florida doc stamps and intangible tax, and prepaids.
Do pricing adjustments affect my rate?
Yes, based on score and down payment.
Can I buy down my rate?
Yes. See the true cost of a mortgage.