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  Guerry Clegg September 4, 2011 at 3:22am

  They won't allow "closing costs" but they do have a list of allowable costs. I've created an exhibit out of that list (with an attorney's help to avoid practicing law) and referenced it in the closing cost section of the contract. I include this in the listing. Bryant, how did Chase approve that? Did they just absorb the loss themselves? Someone correct me if I'm wrong, but I would think the lender has the ability to do whatever it wants to. BUT if they want FHA or VA or an MI company to honor the insurance or guaranty of the loss, they have to conform to those mandates.
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  Cynthia Hammer September 3, 2011 at 12:27pm

  This helped a lot!  Thank you very much!
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  Bryant Tutas September 3, 2011 at 7:58am

  The lender will not pay for the home warranty. FHS PFS guidelines only allow 1% in closing costs and only if the buyer is getting FHA financing. Now having said that I just had Chase approve a 3% contribution on a FHA PFS and the buyer is getting conventional financing.

  However I agree with getting rid of the warranty and reducing the contribution to 1%.