I misread your sentence, sorry. Somehow I didn't see the word "limit."There are countless threads on Reddit and articles online saying that closing credits cannot exceed closing costs, and any excess beyond the closing costs would be returned to the seller. See example thread at the link below. But based on this thread, it sounds like limits on closing credits don't apply for a cash purchase. They would only apply for a lender/mortgage situation.Where did you get that idea? Did you see the sample closing statement I posted above?So for the most part, it sounds like closing credit limits only apply in a lender situation. And they don't apply in a cash purchase scenario.
https://www.reddit.com/r/RealEstate/com ... ing_costs/
Yes, closing credits cannot be used to reduce a down payment if that would put your down payment below a lender threshold (e.g., from 20% to 17%).
Statistics: Posted by toddthebod — Mon May 13, 2024 6:47 pm