HAFA and Contribution to Buyer's Closing Costs
I just had a Negotiator for Aurora tell me that under HAFA (in this case, Freddie Mac HAFA), there can be no contribution to the Buyer's closing costs -- even if they fall within the 3% total for closing costs (e.g., approximately 1% for escrow, title, etc. and 2% to Buyer's closing costs).
I have combed Freddie Mac's servicer bulletins and do not find this explicitly stated or prohibited anywhere. What I see are the words "usual and customer closing costs in the area". In our area (Lane County, Oregon), almost all purchases less than $200,000 are with FHA loans and require some Seller contribution to the Buyer's closing costs (usually about 3% of the purchase price).
Anybody have any experience / advice on this topic?
Replies to This Discussion
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Permalink Reply by Kimber Regan on -
I am in the same situation, with Citi 1st, and BofA 2nd. Have you had any luck finding out your answer. Representing the seller, and they are denying it, based on the above scenario. I have done many Short Sales (successfully), including Buyer's Closing Costs, so this is a first for me. Also, auction is scheduled for tomorrow at 12:30pst, and the bank just informed me of this reason for denial late today...If anyone has any suggestions, or experience on this matter, please advise...Thanks A Bunch!
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Permalink Reply by Anna Williamson on
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Hi barbara:
In GA-and in the five years I have done only BofA SS's-we have always gotten the 3% seller contrib to CC. from BofA. Even when seller did not have an FHA. IAnd on all where buyer and seller both had FHA; both the Buyer and Seller both received 1500 incentive and BofA paid 3k contrib to CC.
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