FAQ – Is A Seller Affidavit Required For First Time Home Buyer Programs

A Seller Affidavit is nothing be be concerned about. It is simply the government asking the seller and buyer to acknowledge that they are acting honestly and in goof faith.  Each Seller affidavit is a little different but some of the things you might find on a Seller Affidavit are

  • Because the amount of benefit the buyer gets is directly tied to the purchase price and interest rate, a third party (the seller) affirm the price that the house is being sold for.
  • The seller affirms that there are no side deals between him and the buyer to make the program work when it shouldn’t have  (buyer purchase the house for 50,000 less than it was worth but paid 50,000 for the 1972 Vega in the yard)
  • Because sometimes the same administrator also administrates the rental department, they may have the seller certify that a tenant was not evicted in the previous 90 days to allow for the seller to sell the home (a conflict of interest for the administrator).

The Down Payment Assistance application can not be submitted until all conditions of the loan have been met and the Original Seller Affidavit has been returned.  Many sellers mistakenly believe that if they ignore the request for them to complete the Seller Affidavit, everyone will forget it.  The Seller Affidavit is the number one reason that DAP transactions run late.

The only additional requirement of the seller in a transaction with a DAP is that they fill out, sign and return the original Seller affidavit.  here are the exact rules.

  • The seller must fill out there section (a couple of check boxes, the address and the purchase price).
  • It must be FILLED OUT IN BLUE INK.
  • It may require the sellers SSN.  If it does, the seller may opt to have it notarized instead.
  • If the seller is a business, then articles of incorporation or other documentation showing that the signer has authority to sigh will be required.
  • the original must be overnighted back to the LENDER not the buyers agent.
  • Remember, the transaction is waiting on this form to come back, so not delay

We have tried to place the SA for each program on its page on our website.  Look there for an example or an additional copy.

Report Incorrect Or Outdated Information On This Page. Make sure to copy and past this pages web address from your browser and then give us a short description of the incorrect or outdated information and where it is located on the page

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

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