For FHA loan, lenders don't care that much about credit and yours and your husband's credit are good enough for FHA loan.
Borrowers usually pay points to buy down the rate. It doesn't mean pay 1 point (1%) to lower 1%, might just lower 0.5% or less.
I know that some mortgage officers want borrowers to pay a deposit before they lock rates for clients; because they don't want borrowers shop around and back off after they lock the rate.
If you finance 3% closing costs, which would be $8,700. If your closing costs is less than that, you cannot get the money. Sometimes mortgage broker charge you 1% to increase your closing costs in order to use all your 3%. Then they credit you back the money as a refund.
Hope this answer your questions but this is not a norm. I don't know why your banker handles in this way. Don't be afraid to ask questions if you don't understand. They should explain to you and make it clear to you.
Good luck with your closing and congratulations!
Real Estate Investment Consultant
Something does not sound right. You should not have to pay a deposit since you are in contract on a property. Since you are in contract, why the deposit? That confuses me. I have been in real estate for 9 years and have never seen a deposit to lock a rate for 2 weeks. I have seen a 1% deposit charged on construction loans, but that is it due to the long term rate lock. I could see paying for the appraisal upfront which should be 300-500.00, but that is it.
The $2900.00 should be credited toward your bottom line to bring to closing instead of a principal reduction. However, if there is no money due at closing since you are financing your CC (Which also does not make sense), it may be taken off of the loan amount. Did you increase the Purchase price to cover the CC?
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if I understand your question correctly, the $2,900 should come off the cash due at closing. Your mortgage amount stays the same.
However, you really should talk to your mortgage broker and/or escrow officer to get an estimated closing statement so you know what you are looking at. There should not be surprises at the last minute.