Quote:
Originally Posted by HomeChoice.com
We put it on the purchase agreement so that everyone can be aware of the "Cash Back" at time of offer. It is stated as "Selling Agent to credit Buyer up to 1% of the Commission after closing" This lets the financial companies know that the money will be passed to the buyer after closing therefore the client needs to secure full funds based on the their merits not the Cash Back. On our Web page we have a link to the new Goverment endorsement page for Cash Back. |
As long as the "cash back" provision is in the body of the purchase agreement, that is fine. That way the lender can ascertain whether it fits into the underwriting guidelines used to approve the loan. That is not fraud.
Not everyone does it right, the way you are doing it -- that's why I introduced the topic to the thread.