Negotiating Repair Credits in Florida Real Estate
Repair credits are negotiated seller credits compensating buyers for needed repairs. Applied at closing to reduce buyer’s cash. Lenders cap credits: conventional 2-9%, FHA 6%, VA 4% of purchase price. Cannot exceed actual closing costs; no cash back.
Process
- Buyer inspection identifies defects
- Submit repair request with specifics or credit amount
- Seller: agree, counteroffer, or reject
- Document in contract addendum
Lender Limits
- Conventional: 2-9% (varies by down payment)
- FHA: up to 6%
- VA: up to 4%
- Cannot exceed actual closing costs
Alternative: Price Reduction
- If credit exceeds lender limit
- Or seller completes repairs before closing
Related Terms
- Inspection Period — Due diligence
- Closing Costs — Transaction expenses
Barnes Walker Real Estate
Barnes Walker’s attorneys negotiate repair credits for Florida buyers and sellers. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC