Can seller give me $$ back at the closing table??

Anonymous · ‎07-21-2009

Hello all :-)

I'm going FHA. If I request a credit for various repairs/replacements of things in the home, can the seller write me a check at the closing table, or do we need to lower the loan amount by the amount that I'm requesting back?

If the seller can write me a check, is it subject to the 6% limit that the seller can pay towards closing cost?

Your insight is appreciated!!

BrianB_The_Loan_Professor · ‎07-21-2009

Not allowed at all

either

lower the sales price

have them cover closing costs instead

or

have them do the work before the close

You cannot legally get any funds from the seller on a loan

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly

Anonymous · ‎07-21-2009

Okay, because I specifically asked my realtor if I can get money back from the seller for repairs. At first he said, No and then he said Yes.

So the seller is reading a letter from me requesting money that they legally can't give me? :-(

Can it be put in escrow?

Anonymous · ‎07-21-2009

I believe the seller would have to do the repairs. They may allow the seller to contract out the work and pay the contractors out of escow, but the house would probably need to appraise high enough to cover the loan without the expected repairs coutning towards it. Also, I do believe thees concession would probably count towards the 6%. Hopefully someone more knowledgable will chime in.

DallasLoanGuy · ‎07-21-2009

the lender may allow the funds to be held in escrow.

payable to a contractor.

you cant show up with home depot receipts and a sun tan and say you fixed it and get the money. you will need an estimate to give to underwriter too

Retired Lender

Anonymous · ‎07-21-2009

Actually there is a an option to get another type of loan that works with FHA for improvements to be made to the home after you close escrow. My lender went over it briefly, saying that in the market where I live it would not be advisable because there are bidding wars going on and this type of loan generally takes longer to close (because it's government related). I didnt press further but if you are interested your lender/broker should be able to tell you about it.

Anonymous · ‎07-22-2009

Good morning and thanx for the insight everyone!! I'll see what the seller comes back with and then we'll talk escrow or maybe even lowering the sale price.

Thanx again!! :-)

Anonymous · ‎07-22-2009

@DallasLoanGuy wrote:

you cant show up with home depot receipts and a sun tan and say you fixed it and get the money.

LOL!!

Anonymous · ‎07-22-2009

there is the FHA 203K program, but sellers so nto like them and only certain banks will do them.

DallasLoanGuy · ‎07-22-2009

@Anonymous wrote:
@DallasLoanGuy wrote:

you cant show up with home depot receipts and a sun tan and say you fixed it and get the money.

LOL!!

EVERYBODY is a ontractor these days.......

Retired Lender