barney.mathe…,  in Allen, TX

does hud allow poc items (appraisal, etc) to be credited toward down payment?

Asked by barney.mathews, Allen, TX Thu Jan 23, 2014

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Gregorio Den…, , San Diego, CA
Thu May 29, 2014
If there is another credit from either the seller or from the lender, this can easily be accomplished. The easiest way would be to have the lender credit the amount of these items.
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, ,
Thu May 29, 2014
No, if the down payment is .5% or 3.5% these prepaid items do not get credit towards the down payment unless:

You can talk the seller or realtor into paying these fees it for you. Then the credit would go into escrow and you could then count them against the down payment.

I am seeing a wrong answer down there, I am guessing she did not understand the question as that loan officer is generally reliable.
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Shadi Kian, Agent, Lake Forest, CA
Thu Jan 23, 2014
Hello Barney;

No! the POC such as appraisal fee is buyers/borrower's out of pocket fee. It cannot be credited towards the buyer's down payment.
When you are writing an offer, you may ask the seller to credit you for some of your closing cost up to 6%, ( not down payment). It works the same, just with different name, to help you with cash at closing.

Best of Luck
Shadi Kian
Real Estate and Mortgage Broker
NMLS # 248451
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Thanks man....b
Flag Thu Jan 23, 2014
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Jan 23, 2014
Nope, but the seller can pay the closing cost, even the POC’s if they agree to it in the purchase contract. That would work out the same for you in terms of cash needed to close.

Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
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Elva Wormley, Mortgage Broker Or Lender, San Jose, CA
Thu Jan 23, 2014
Hi Barney,

The minimum required investment is 3.5% of the purchase price. That does not include the appraisal fee or any other closing costs.

Best regards,

Elva A. Wormley
Mortgage Consultant
(408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
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