Well back to the orig question - it's up to the lender how much they are willing to allow the seller to pay. I bought my own home in 2005 for 100% financed and my lender allowed up to 6% so I bought it for $160000 with the seller agreeing to pay up to $6000 in closing costs. I still ended up "technically" paying it - but it was rolled into the 100% cost. My earnest money check was never even deposited because my attorney put a * next to the $500 amt and had it written *To be returned to buyer at closing due to 100% financing.

The lender would not allow me to have the seller pay for the home insurance (was about $600 for the 1st year) and they would not allow the escroed taxes to come from the seller. I ended up not escrowing anyway because my lender charged a fee to do it at time of closing but I could call once I was on their books and set it up for free. I believe they would have allowed them to pay for the home inspection, but I didn't ant them to because if they paid for it - they control it - and I wanted to be in control of it. They also only would pay for 1 lawyer - luckily my lawyer and my broker work hand in hand so we used the same lawyer so it didn't come up, but if the buyer hires a separate lawyer - it may not be covered.

So while I agree broke people shouldn't get a house - there is broke and there is like flat out destiture. If you don't ahve a big amount of savings but are sick of throwing your money away - great - IF you have some way to get money if there is an emergency. If you scrounge your pennies to go grocery shoping, then you have issues....

EDITED: OK only read the first page of responses before I replied, lol.. but I'm leaving my reply just in case anyone cares, lol.

I just sold one of my investment properties to a buyer that has no money. It is scary when you see it on paper. We paid all closing costs $9,500 because they did not have a penny. We went back & forth until we realized no funds were available & thanks to some members of the this board that suggested not to loose the deal we went thru w/it. The offer was the amount we knew it would sell for, the closing costs were high but that is the average here in florida 4.2% of sell price. They purchased w/no money down, 2 seperate loans 80/20. Amazing, I do hope they can pay for it and I do hope their agent advised of the taxes because here in So Florida they are very high compared to the wages residents make.