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No More FHA Non-Allowable Closing Costs.

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Mortgage and Lending with LoanOfficerSchool.com NMLS 291249

No More FHA Non-Allowable Closing CostsGFE

This is really, really old news.  FHA did away with their list of FHA Non-Allowable Closing Costs in June of 2006 but the question keeps coming up. 

The only FHA Closing Cost that must be paid by the seller is the Tax Service Fee.

Many banks reject FHA offers because they are using outdated information. When your REO buyers require FHA financing be sure to let the bank know that buyers and sellers pay their own FHA Closing Costs with the exception of the Tax Service Fee which normally runs about $80.00. 

AND... The Banks should also be notified that FHA no longer requires a long list of repairs.  ONLY health and safety issues will be required.

AND... If there are a lot of repairs the FHA 203k rehabilitation loan will allow the property to be purchased "AS IS"

         

Comments (2)

Bill C. Merrell
Merrell Institute ~ Appraisal Education Network - Bohemia, NY
Ph.D. - Merrell Institue

Thanks for the information. I knew the rules were changed, but I didn't realize it was 2 years ago.

All the best and keep on blogging.

Bill

Aug 26, 2008 07:52 AM
Anonymous
Carol Castillo

Thank you Bill, this was the exact information I was looking for to finish up an offer.  I appreciate your time to help.

Aug 21, 2009 03:45 PM
#2