fha proposes changes to seller paid contributions: FHA Proposes Changes to Seller Paid Contributions - 02/27/12 11:44 AM
FHA Proposes Changes to Seller Paid Contributions
FHA Proposed Rule on Seller Concessions
Yesterday, HUD published a request for comments (due in 30 days, by March 26) on their revised changes to policies for seller concessions. The new proposal is to limit seller concessions as follows:
Reduces the amount of permitted seller concessions to 3% or $6,000, whichever is greater; Further limits seller concessions to never exceed the borrower's actual closing costs; Redefines what can be considered as acceptable closing costs to be paid by seller concessions to: closing costs, prepaid items, discount points, up-front MIP, and any interest rate buydown. … (2 comments)