A practical resource center for Michigan Realtors
Financing tools can change how a listing is presented to buyers — a credit toward eligible costs, a buydown, property-condition prep, or clearer offer terms. This page explains those options with current program sources. It does not claim that any approach will produce an accepted offer or a quicker sale.
Shane Thomas, Senior Loan Officer | Ease Mortgage, NMLS #444451. Company NMLS #2273319. Last reviewed November 10, 2026.
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Walk through a listing’s financing angles together. There is no online booking link on this page. This is a consultation, not an approval, a quote, or a finding that any offer will be accepted.
A seller concession, or interested-party contribution, is a credit toward certain buyer costs. It is not the same as a price reduction. A price cut changes the contract price used for the loan and, often, for transfer tax and percentage-based compensation. A concession generally leaves the contract price in place and is applied to eligible closing costs, prepaids, and, when allowed, a rate buydown. It generally cannot be used for the buyer’s down payment.
Program caps apply. For a Fannie Mae conventional principal residence or second home, financing concessions are generally limited to 3%, 6%, or 9% of the lower of sales price or appraised value, depending on LTV/CLTV, and 2% for investment property (Selling Guide B3-4.1-02). FHA and USDA generally use a 6% of sales-price framework. VA limits seller concessions to 4% of reasonable value, and normal closing costs plus market-appropriate discount points are excluded from that cap. Lender overlays can be lower. Unused credit typically cannot be paid in cash to the buyer.
Read the full comparison, IPC table, and Michigan transfer-tax notes in Seller Concessions vs. Price Reductions. The worksheet below reuses that same cap and cash-to-close logic for an educational illustration.
A permanent buydown uses discount points, paid at closing, to reduce the note rate for the life of the loan — if the lender actually prices that reduction. A temporary buydown (for example, a 2-1 or 3-2-1 structure) lowers the payment in the early years and then steps up to the note rate. Either can be funded by a seller credit when the program treats those costs as eligible and when the credit fits within IPC limits and actual costs.
Pricing changes by lender and by day. A temporary buydown does not change the note rate used for qualifying in every program the same way. Confirm current pricing and qualifying treatment with the loan officer before an offer is written. See Mortgage Rate Buydowns: A Powerful Tool When Used Correctly and the buydown calculator.
Whether a particular property can be financed under a given program is decided by the appraiser, the underwriter, and the investor or agency guidelines on that file. The notes below are educational. They use “may require” language on purpose. This page does not determine eligibility.
VA- and FHA-backed loans are used by many Michigan buyers. The myths below are common in listing conversations. The facts are balanced and cited. This section does not claim that VA or FHA loans close more quickly, or that any offer will be accepted.
Fact. VA allows the seller to pay the buyer’s closing costs. Some fees cannot be charged to the Veteran; those items must be paid by another party when they are charged at all. VA also limits certain seller concessions to 4% of reasonable value, and normal closing costs plus market-appropriate discount points are excluded from that cap. Sources: VA Lender’s Handbook, Chapter 8; VA loan fees and seller concessions consumer page.
Fact. If, during a purchase appraisal, it appears that estimated market value will come in below the sales price, the VA Tidewater Procedure requires the appraiser to notify the requester and allow two business days for additional comparable sales data. Tidewater is a process for sharing market data. It is not an instruction to meet a preset value, and it does not promise that the contract price will be supported. Source: VA Lender’s Handbook, Chapter 10, Topic 8; VA appraisal policies bulletin.
Fact. An FHA appraisal applies FHA property standards in HUD Handbook 4000.1. It is not inherently harder or easier than another appraisal. What is requested depends on the property, the appraiser’s observations, and the lender’s review. Condition issues, not the four-letter program name, usually drive repair lists.
Fact. Required repairs generally relate to minimum property requirements — safety, soundness, and sanitary or security items — not ordinary cosmetic wear. VA guidance tells appraisers not to recommend repairs of purely cosmetic items or minor deferred maintenance. FHA similarly focuses on property acceptability standards. The appraiser and lender decide what is required on that file.
Fact. Offer strength depends on the buyer’s documentation, the property, earnest money, contingencies, the closing date, and underwriting — not the program name alone. A VA or FHA offer is not inherently weaker or stronger than a conventional offer. Compare the actual terms. This page does not rank offer types.
A monthly housing payment is more than principal and interest. Buyers often plan around PITI: principal, interest, property taxes, and homeowners insurance. Mortgage insurance may apply on some loans when the down payment is below the program’s threshold for dropping it. A homeowners association or condo fee, if any, is added on top. None of those figures on this page is a quote.
Michigan taxable-value uncapping warning. Under Michigan law, a home’s taxable value is generally capped until a transfer of ownership. In the calendar year after a qualifying transfer, that cap can come off and taxable value is reset toward state equalized value (SEV), which is supposed to approximate 50% of true cash value. An assessor does not automatically set SEV at half of the sale price. The taxes on a listing may reflect the seller’s still-capped taxable value and may not predict what a buyer will pay the following year. A Principal Residence Exemption, if the buyer qualifies and files on time, can affect school operating mills. Confirm taxable value, millage, and filing deadlines with the local assessor or treasurer. This is not tax advice.
Use the mortgage calculators for a payment, cash-to-close, or buydown illustration. Enter the buyer’s own figures. Default examples on that page are labeled as examples only.
If the appraisal comes in below the contract price, the parties may renegotiate price, change concessions, bring additional cash, or use an appraisal contingency if one is in the agreement. Comparable sales, condition, and concessions reported on the appraisal all matter. There is no single outcome.
Condition items can lead to repair requirements or a re-inspection. Fannie Mae value acceptance (an appraisal waiver in some Desktop Underwriter casefiles) is file-specific. It is not something a listing can assume, and it is not a finding that the contract price is supported. Whether a loan receives value acceptance depends on that casefile and current investor policy.
Known condition items in the worksheet are phrased only as items that may be flagged; the appraiser and lender decide. This page does not issue an eligibility or repair verdict.
A typical financed purchase moves through preapproval or application, an accepted contract, processing, an appraisal (when required), underwriting, a Closing Disclosure, and closing. That sequence is educational. It is not a schedule, and this page does not assign a number of days to any step.
Financing and appraisal contingency deadlines are set by the purchase agreement, not by this website. Missing a contracted deadline can have consequences that the seller and the listing agent should review with their attorney when needed.
Federal rule: for most closed-end mortgage loans secured by real property, the creditor must ensure the consumer receives the Closing Disclosure no later than three business days before consummation (12 CFR 1026.19(f)(1)(ii)(A)). Some later changes require a new three-business-day waiting period; many others can be disclosed at or before consummation. This is not a promise that a particular file will close on a chosen date.
Some move-up buyers want to purchase the next home before the current one closes. That can involve a sale contingency, a bridge or other financing discussion, or a delayed closing. Each path has tradeoffs for the listing seller who receives that kind of offer. See Buy Before You Sell for the buyer-facing explanation, and talk through the offer terms with the listing agent and, when needed, an attorney. Shane can help explain the financing pieces; he does not decide whether a seller should accept a contingent offer.
Michigan purchase agreements commonly address financing in generic ways like the terms below. Form language varies by local board or attorney-drafted contract. This is general education, not a review of any particular form, and not legal advice. Sellers should consult their listing agent and, when needed, their attorney.
Enter non-sensitive property details and, if you want a numbers illustration, optional financing assumptions. Do not enter seller or buyer names, Social Security numbers, income, or a full street address. A nickname is optional and is kept only in this browser; it is not placed in the shareable link.
Educational only. Not a loan approval, property eligibility determination, appraisal, or guarantee of any offer or sale.
Educational only. Not a loan approval, property eligibility determination, appraisal, or guarantee of any offer or sale.
Approach A
Lower the contract price by the proposed amount. Illustrative payment, cash, and seller net use the reduced price.
Approach B
Keep the list or contract price and apply a credit, limited by program caps and eligible costs.
Approach C
Same price as B, with example points and an example rate cut. Pricing is not a quote.
If you would like Shane to walk through a listing’s financing angles, use this request. It is optional. Nothing here is stored on this website. Submit opens a message in your own email app addressed to [email protected]. You can also call or copy the text and send it yourself.
A short, branded PDF you can share with a seller team: Five Financing Strategies That Could Help Your Next Listing. It uses “could” language only. It does not state down-payment percentages, rates, or payments, and it does not claim that a strategy will produce a faster sale or an accepted offer.
No strategy on this page is a promise that a property will go under contract, that an offer will be accepted, or that a sale will close. Financing tools can change a buyer’s cash to close or payment in an illustrative scenario, but the market, the property, the contract, and underwriting all matter. This page does not claim a faster sale or an accepted offer.
It is an educational comparison of possible approaches — a price adjustment, a concession toward eligible costs, or a seller-funded buydown — using figures you enter. Results are illustrative. They are not a loan approval, a property eligibility determination, an appraisal, or a recommendation.
No. The request is built as a message in your own email app addressed to [email protected]. This website does not store the form, and it does not send the request over a form backend. You can also call Shane or copy the request text.
Not inherently. Strength depends on the buyer’s file, the property, the contract terms, and underwriting. A VA or FHA offer is not automatically weaker or stronger than a conventional offer.
Sellers should review financing-related terms with their listing agent and, when needed, their attorney. Shane can help explain how a concession, a loan type, or a financing or appraisal contingency typically works, but he does not give legal advice and does not decide whether a seller should accept an offer.
Last reviewed November 10, 2026. Guidelines and handbook sections change. Confirm current language with the linked source and with the lender who will underwrite the file. Some official sites may return a 403 status to automated tools even when they open in a browser.
Shane Thomas, Senior Loan Officer | Ease Mortgage, NMLS #444451. Ease Mortgage, NMLS #2273319, 1050 Wilshire Dr, Suite 300, Troy, MI 48084. Licensed in Michigan and Indiana. Equal Housing Opportunity.
Walk through a listing’s financing angles together. There is no online booking link on this page. This is a consultation, not an approval, a quote, or a finding that any offer will be accepted.
