Updated almost 4 years ago on . Most recent reply
Credit back from seller.
Hi everyone, I’m in escrow.
I was able about 20k back from seller. My closing cost around 11-12k. I want 8k to go to home improvement credit to an invoice contractor. My realtor agent said it is not possible and push me to lower the purchase price from that 8k credit. She doesn’t want to do this.
I referred to get cash for home improvement. Have anyone go thru this? My lender cleared me from this.
TIA
Most Popular Reply
Your lender (their overlays or rules), the product you are using, sales price determines if this allowed. What percent of the sales price is $20k? Greater than Seller and escrow have to agree to invoice a contractor. Escrow won't do a hold back and pay him in increments for free. You need the lender's underwriter to approve your plan which would be typed as and amendment, the contractor may need to be vetted (license), this needs to be done AFTER the appraisal is completed so Underwriter can see what you are paying contractor for. You have made demands on several people without knowing if you have a chance of this flying. If 20 is more than 3% of sales price it's probably not going to fly.