Have you ever watched one of those home buying shows on HGTV and noticed that the buyers were always asking the seller to pay for their closing costs? Before I became a real agent I honestly thought that buyers were supposed to ask for closing costs  and that seller's were supposed to pay the buyers closing costs. I quickly learned after my first few transactions that quite the opposite is true in the Dallas/Fort Worth market. Now, that's not to say that you shouldn't ask, if you indeed need the assistance. However, in the spirit of full disclosure and good advice I want all of my potential clients to know that it is not common that seller's pay buyers closing cost in a seller's market.

What are closing costs exactly? Closing costs are a myriad of expenses related to the purchase of a home.  They vary based on where you live, and the property you buy. For the buyer, they often include things such as, but not limited to:

Loan Origination Fees
Insurance Premiums
Recording Fees
Underwriting
Appraisal
Title Fee
Survey Fee

Also, I think that it is  important to note that both sellers and buyers incur separate closing costs.  So whenever a buyer requests closing costs, they are essentially asking the seller to cover their (the buyers) costs to close. The seller then has to pay their own closing costs as well as the buyers closing costs. Which means that the seller nets less profit from  the sale of their home.  The latter is typically  the reason that a seller may not accept an offer that includes a requests for closing cost.

Options for people who may not have the funds for closing.

If the market allows, you may offer over the asking price to cover closing costs (ask your agent for details)
Ask the lender if your loan will allow for a credit towards closing costs
Ask the lender if you qualify for any grants towards closing costs
If you are considering moving into a rural area a USDA loan may be an option

Lastly,  asking a seller for closing costs is totally fine if absolutely necessary. However, I would only encourage someone to do so if, they truly need the assistance. I've actually had 3 offers last year to get accepted where the buyer requested most, if not all, of their closing costs to be covered by the seller. So it's do-able, just not common.

Nonetheless, I hope this information was of some assistance. If you are in the market to buy or sell, or just have questions about the process, please feel free to contact me and I'll be happy to assist you with any of your real estate needs.

Happy House Hunting!
Donna Foy

I have to preface this article by saying that while it is completely possible to purchase a home with no down payment there are typically credit, income and sometimes location restrictions on these types of programs. So everyone that is interested in purchasing a home with no down payment may not qualify. However, the beauty of purchasing a home right now is that there are other low down payment options available.  If you don't qualify for down payment assistance, you may qualify for a FHA loan that offers a low down payment of  3.5%. 




If you qualify for a program that offers down payment assistance, there are other expenses that you will incur that are related to the buying process (i.e earnest money deposit, option money fees, appraisal, and possibly closing costs) 

Typically a score of 640  is required to qualify for most down payment assistance programs.

There is usually an income cap on these types of programs, based  on your household size. (see chart for examples)

A lot of cities in the state of Texas  have there own down payment assistance programs. The cities of Arlington, Grand Prairie, Lewisville, Dallas, and  Irving, to name a few.
There are programs geared toward specific  professions. Texas Heroes  is a down payment  assistance programs for Teachers, EMS Personnel, Correctional Officers, and Fire Fighters.

And lets's not forget about the Texas Veterans. Texas has you covered.  

On the state level Texas has two major down payment assistance programs such as TSAHC, and TDHP . 

And if you're interested in living in a rural area  (i.e  Forney ,Providence Village, Savannah) USDA  loans are a great 100% financing option. 

If you're considering purchasing a home, and you need to down payment assistance you owe it to yourself to research this. Your first step you be to contact your local real estate agent   to determine which lender may be best  suited for your situation.

Happy House Hunting!!

Donna Foy