Can the Buyer Reimburse the Seller for Closing Costs in a FHA Loan?
Full Question:
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