| Author |
Previous Topic | Next Topic |
|
joeyostjr
181 Posts |
 Posted - 05/23/2008 : 7:46:20 PM
|
Hi Everyone,
I am getting mixed answers from my lenders and wanted to get your insight.
Borrower is approved FHA no problem. He is putting 3% down and getting 4% from the seller for closing costs etc. The problem is the Realty company issues 20% of 1% of their commission to their/my client. I have confirmed with the Realty company and this is their model for every transaction. My question is since he is not using it for closing costs is FHA ok with him just walking away with it? I have gotten many different answers from my FHA lenders and wanted to get some thoughts from BO. The Realty company itself doesnt know how to address it as well.
I do know this only pretains to FHA since they have had no issues on comforming etc.
Thanks for you insight! |
|
ladysammm
352 Posts |
Posted - 05/23/2008 : 8:03:30 PM
|
To my knowledge, a borrower cannot get any funds back through a purchase transaction at the close of escrow if it is not funds they gave during the process such as a earnest deposit but all closing costs were paid by seller so there would be a refund of borrowers monies. I believe that stands for all purchase transactions.
If the realtor gave money to the buyer and the lender is aware of it being disclosed on the HUD 1 the lender would have to require the principle loan amount be reduced dollar for dollar by that amount, which means the extra funds would be applied to lower the principle loan amount at close.
If you have any other questions please email me at pam.kirchner@assurityfinancial.com Wholesale AE. if you are approved with us call your AE. If not I would be happy to help you. |
|
|
kalee3415
193 Posts |
Posted - 05/25/2008 : 10:06:25 PM
|
This would be what FHA considers aa "inducement to purchase". The amount over closing costs & prepaids would be a dollar for dollar reduction to the sales price prior to LTV being applied. So the correct set up for example would be;
Sales price of 103,000
Realtor contributes 3,000
Sales price then should be adjusted to 100,000
Required downpayment would be 3% of adjusted sales price ($3000) |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
