I am in the process of buying a house and as part of the deal the seller has promised to give me cash back at

Asked by Sam, kron Fri Mar 28, 2008

the end of closing. Is this allowed in Ohio?

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Bob Kienast, Agent, North Royalton, OH
Mon Mar 31, 2008
In Ohio, seller givebacks are limited to closing costs ( I imagine this is what you're talking about ) or some down payment assistance programs.
0 votes
Bob Giusti, , 03079
Fri Mar 28, 2008
In NH it's common practice to get cash at closing but it has to be applied towards the buyers closing cost, most lender will not allow you to used the $ for repairs or to upgrade items in the home. The maximum you can receive in NH is 3% of the purchase price and even though you cannot have it go towards the repair or upgrades many of the transaction are just that. I'm sure it varies from state to state and lender to lender, but be careful, it you have a contract to recieve say $10,000 back at closing on a $300K home, the amount of $ over your closing cost are more than likely going back to the seller.
0 votes
Marilyn Gibs…, Agent, Saint Charles, MO
Fri Mar 28, 2008
It is not allowed in Ohio or anywhere else if your lender has not been informed about it. I am not aware of any lenders who will allow it because it does not meet FNMA guidelines. Lenders will allow seller to pay for repairs and the payment is made to the contractors. Lenders also will allow seller to pay for your closing costs and other costs at closing , but there are limits (usually 4% of the sales price). All of the above must show on the settlement statement. Otherwise it is considered loan fraud.
Kron- nobody looks good in an orange jumpsuit. Be careful, and good luck to you.
Web Reference:  http://BestSellerSTL.com
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Hi, , Virginia
Fri Mar 28, 2008
whatcha goin to buy with the cash?

anyways

good luck
0 votes
Don Bush Team, , Columbus, OH
Fri Mar 28, 2008
Consult a lawyer to be sure.
0 votes
John Youker,…, , Beavercreek, OH
Fri Mar 28, 2008
As long as all dealings are above the table and on the HUD and your lender approves the HUD, then yes - it is allowed. There is a form that is signed at most closings that states that all terms of the contract were copmleted and that there were no side deals not on the contract or the HUD statement that transpired. If you sign that and complete a side deal, then you are guilty of fraud, so be careful. If the money is to be used for repairs, then have the seller make the check out to the repair contractors and give it to you at closing to get the work done later. I find it hard to see the lender allowing you to walk out with a handful of cash unless there is a work invoice to back it up and the amounts match. Your Realtor should be able to help you with all this - Good Luck!
Web Reference:  http://www.SWOhioRealty.com
0 votes
Ronnie Woodr…, Agent, Columbus, OH
Fri Mar 28, 2008
If it is on the HUD yes. But almost no lenders will allow this. Is the money to do some sort of repair? I have seen where it was allowed but never to the buyer. It was directly to a contractor for work. So buyer beware! If you would like more indepth detail please let me know or contact a local Real Estate attorney or title company. RW
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