A property seller may credit a buyer for closing costs in lieu of a price reduction.
The closing cost credit should not exceed the actual closing costs as shown on the final HUD settlement statement. If the amount of the credit exceeds the actual closing costs, and the down payment is compromised an underwriter will review the file and possibly disallow a portion of the credit.
Items that can be included in the credit:
Loan fees including discount points, Appraisal cost, Title company fees, Recording and delivery charges, Prepaid interest, Taxes due at closing, Insurance due at closing, Invoices for work completed to the property.BEWARE. .. [READ MORE]
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