Video Transcript:
The down payment is everyone’s focus, but it’s a dangerous distraction. Your actual cash-to-close includes closing costs and prepaid expenses, often surprising buyers at the table. To truly minimize cash outlay, I, David Ghazaryan, engineer financing around structural rules, not just rates. We leverage specific contribution limits to reduce your closing liability. Here’s the critical difference. FHA allows sellers to contribute up to six percent of the price. Conventional loans often cap this contribution at just three percent. (Data may vary over time) This six percent allowance isn’t just a small detail; it is the core mechanism. With it, a negotiated seller credit can cover your closing costs and prepaids. The consequence is retaining your capital. By financing costs via seller credits, you preserve cash reserves, which conventional loan underwriting systems often demand from a buyer. This analysis continues on my platforms. The full article on my website provides the complete framework, showing how these structural differences directly affect your required closing funds.
Read Blog Here: https://www.iqratemortgages.com/blog/fha-vs-conventional-in-florida-which-needs-less-cash
