Question

The maximum seller-paid closing costs on a new FHA loan for a house being purchased for $200,000 is $6,000.

Answer 1

False

Step-by-step explanation:

For FHA loans, the seller or the buyer can pay for the closing costs. In case the seller agrees to pay the closing costs for the buyer, the total selling costs can sum up to 6% of the total purchase price.

Therefore, if the seller is paying the closing costs and the purchase price is $200,000, the maximum the seller will have to pay is $12,000 (= $200,000 x 6%).