What exactly does it covers when we ask for that seller has to pay for 3% towards RCC/NRCC?

Another question is if the purchase agreement has marked conventional loan, can buyer get FHA?

Your mentioning a snippett of what is in your contract.

It's not just the words that are used but the CONTEXT in which they are used that relates to the rest of the contract.

Call your broker to look over your specific transaction. Last thing you want to do is make the brokers e and o go up because you guessed. If you are the broker take some more contract classes for c.e. credit but in the meantime get advice from an attorney for contract review.

Non-recurring closing costs can easily be defined as one-time costs during the close of escrow.

Recurring closing costs are a bit more difficult to define since it is supposed to be for costs that continue on. I think it would depend on the rest of your contract.

As far as the buyer switching their type of financing, I can't imagine why it would be a problem. I have had several deals where the buyer will switch from FHA to Conventional and vice versa.

I would check with your broker to make sure.

It depends on the words in the contract.

In our state, the standard contracts have a place to put the type of financing (conv, VA, FHA, etc,). If the buyer should decide to switch (say from conv to FHA) and get turned down, a seller COULD look at this at try to claim any deposit money because the buyer didn't follow the terms of the agreement. And it would happen for sure if the seller got an attorney involved.

In our market, asking for 3% closing cost assistance from the seller happens in about half of the transactions I see. A good listing agent mentions this to a seller when assisting them in pricing their home, that way, there are no seller's net surprises at contract or closing.

Dial,

The type of financing is important to the seller, because conventional financing is usually less complicated and therefore a more solid deal than FHA is. In most states, buyers cannot switch from conventional financing to government financing (VA, FHA, USDA) without amending the contract.

Closing costs usually cover all of the buyer's expenses in the purchase such as lawyer, title search, deed transfer tax, adjustments for oil, propane and property taxes.

I think everyone has nailed every part of this question well. I will clear up one item:



These cost's are generally Property Taxes, Homeowners Insurance, PMI, MIP, and Interest. Items paid in advance that are charged at a later date.