FHA – Cash Back from Seller Concession: Can the borrower receive cash back on an FHA purchase when the seller concession exceeds the borrower costs? This is a Clarification from Last Month’s Q&A.
Answer: FHA loans with excess seller credit can only be applied to certain fees. Call me for details! FHA seller concessions cannot be used as cash back to the borrower except when being applied towards a closing cost that was paid outside of closing, and documented as paid with the borrower’s own funds. If the […]