Darrell, I just sent you an email with a question - thank you
Does HUD require that I provide an est HUD1 with all the buyers fees. How can I since escrow does not have the Escrow Instructions from the buyers Lender. Do we just guess on the fees? HELP Please
Darrell Powell said:
Since I work for HUD in the National Servicing Center and I approve and deny variances I wanted to give my input. It is correct that per Mortgagee Letter 2008-43 HUD will pay up to 1% of the buyers closing cost as long as the buyer has FHA financing. While there is no written rule or guideline HUD has approved variances of up to 6% buyer concessions regardless of financing type, when this happens the buyer is usually financing his closing cost and HUD is netting well in excess of 88%. It is very common that HUD approves 3% concessions for buyers, again regardless of their type of financing, but the key is HUD has never approved concessions for a non-FHA financed buyer where the net is not at least 84%. Every case is reviewed independently and my statements here do not guarantee or imply that every buyer will be approved for concessions not to exceed 6% if HUD is netting 84%. If anyone ever has any questions please feel free to email me, [email protected]. If you have the FHA case number that is what I really need or the complete property address, HUD cannot search by a lender/servicer loan number.
Did you need to provide the Lender with a HUD1 showing all of the buyers costs?
Norene
Paola Martinsen said:
Yes, just had 3% approved today through a variance must be full appraised value and meeting their min net 88% in this case since this was the first 30 days of the marketing period of the ATP.
Too funny... B of A told me it is HUD's requirement to submi the variance with a HUD1 showing all of the buyers closing costs. I though they were pulling my leg AGAIN :-)
Thank you
Too funny... B of A told me it is HUD's requirement to submi the variance with a HUD1 showing all of the buyers closing costs. I though they were pulling my leg AGAIN :-)
Thank you
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