06/25/2026
A first-time buyer in Bay Area - qualified for the loan without a problem. The issue was cash to close — she was about $11,000 short after the down payment and closing costs.��We asked one question: what will the seller contribute?��The seller had been sitting on the home for 40 days. A 3% seller contribution cost them less than a price cut — and it solved the problem completely. Deal closed. So
- On owner-occupied transactions at 80% CLTV or below, sellers can contribute up to 6% toward closing costs. Above 80% CLTV, the cap is 3%. For non-owner occupied and second homes, it's 3% regardless of LTV — unless the seller is a volume builder, in which case up to 6% is allowed.
When you are tight on cash to close, the negotiation isn't over. We will find creative way and even ask seller to see if he can contribute — and know exactly how far you can take this.
Call me or email me for situations like this. I can help (510) 755-0980
