We have a $500,000 FHA Purchase with a 3% Seller Credit for Closing Costs. The borrower wants a “No Points” loan, so the Realtor was rightfully concerned that the closing cost credit is too large. The credit is technically too large b/c the total closing costs (recurring and non-recurring) will be less than $10,000 b/c of the time of year we are closing (the Impound Account only requires a few months of property taxes).
But, we will “Use Up” the entire credit by charging $5,000 in “Fake Points”. We then rebate those Points back to the buyer immediately after close. We do this often, and it is a very effective tool to get cash back in the hands of buyers who need money after close for improvements or move-in costs.
We can charge “Fake Points” to ensure closing cost credits are used up, and rebate them after close.
Call Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646