If you do not plan on staying there or keeping the loan very long, having the lender pay it from yield may be the best move.
NMLS # 6395
Financing Kentucky One Home at a Time
All together, the borrower will achieve his objective not to include the upfront MIP into his loan amount.
Is there a restriction in that regard?
I looked up the FHA website and didn't find any document that could clarify that.
I hope it was not the mortgage banker that told you it could not be paid up front in cash.
If so - time to find another banker!
Gerry Dunn - Associate Broker
Serving Maryland, D.C. and Northern Virginia
Over 27 years
Whatever portion of the seller concession is not used is returned to the seller at closing. So, you will want to spend every dome. Seller contributions can be use towards closing costs, prepaids, escrows, the UFMIP, and towards points to buy down the mortgage rate.