Full question:
In an real estate transaction is it legal for the buyer and seller to engage in other contract to for the buye to repay the seller closing cost paid by the seller on an FHA loan?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Texas
Answer:
The FHA defines allowable closing costs that may be charged to the borrower. A contract that circumvents these rules may not be upheld. These costs are determined as reasonable and customary by each local FHA office.
All other costs in the transaction are considered non-allowable and generally paid by the seller when purchasing a new home or by the lender when refinancing your current FHA mortgage.
•The appraisal fee and any inspection fees
•Actual cost of credit reports
•Lender's origination fee
•Deposit verification fees
•Home inspection service fees up to $200
•Cost of title examination and title insurance
•Document preparation (by a third party not controlled by the lender)
•Property survey
•Attorney's fees
•Recording fees, transfer stamps and taxes
•Test and certification fees, water tests, etc.
Please see the information at the following links for further discussion:
http://www.myfha.net/FHAassistance/closingcosts.html
http://www.jacksonteamre.com/fha_loans.htm
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
