Closing Help from HUD

Q: Will HUD pay for any closing costs and selling agent's commission?

A: HUD allows up to 3% Real Estate Commission and up to 3% Closing Help.. Although HUD may pay for these costs, keep in mind that the higher the closing cost and commission will reduce your Net to HUD and may affect your competitive bidding ratio.
 
Form HUD-9548 (Sales Contract – Property Disposition Program), shall be used to reflect the total dollar amount HUD is expected to pay towards a purchaser’s financing and closing costs. However, in no event may the costs exceed three percent (3%) of the property’s gross purchase price. If the total closing costs reflected on the HUD-1 settlement statement are less than the amount indicated on the sales contract, HUD will reimburse only the actual costs charged and will not credit the purchaser with any difference either in cash or through a reduced purchase price.
 
Within the three percent (3%) of the Allowable Closing Cost allowance, HUD will reimburse loan origination fees up to one (1%) percent of the mortgage. However, on an FHA 203(k) rehabilitation mortgage loan, HUD will reimburse one and a half percent (1.5%) of the mortgage. On the Supplemental loan to the 203(k), the Supplement Origination Fee will be payable by HUD at 2.5% of B10 on form HUD-92700 (203(k) and Streamline K Maximum Mortgage Worksheet), not to exceed $875.

 

 The following closing costs MAY be paid by HUD (Max 3%):

 Appraisal fees

 Credit Report

 Flood certification

 Loan discount points (up to 3%)

 Loan origination fees (up to 1%)

 Recording fees, transfer taxes, or fees

 Survey (if required by lender)

 Title insurance coverage for Lender and Owner

 Home Inspection (including mold, radon, and LBP)

  

 Closing costs NOT paid by HUD:

 Prepaid escrows/reserves for association dues

 Prepaid Homeowners insurance or property taxes

 Prepaid flood insurance

 

Hud will allow up to 3% Closing Help. HUD's letter of 3% is stated on the link below. 

Closing FAQ's

1.   How do I schedule my closing?

Please upload your complete closing package as one attachment into the Yardi Portal. Your closing will be

assigned to a specialist for review. You will be contacted directly with any corrections or issues with the closing
date.

 

2.   What is the link to access Yardi’s P260 Portal and upload my closing package?

https://www.hudp260.com/Pages/Resources/hudtraining_mm3_portal.aspx

 

3.   What is the number to Yardi’s P260 helpdesk?

805-699-2053

 

4.   Where do I upload the preliminary HUD-1 Package in the Portal?

On the Functions menu, click Add Attachments.  In the category field, select Settlement and subcategory select Prelim HUD-1.  Please do not use any other category or subcategory.

Use of the wrong category may delay your approval.

5.   What documents are to be included in the Prelim HUD-1 Package?

HUD-1 Settlement Statement (lender approved), tax bills, signed closing instructions, outstanding invoices, and warranty deed with return address instructions.

6.   When should the Prelim HUD-1 Package be uploaded for closing?

Your package should be uploaded no later than five (5) days prior to closing. It is not necessary to request a closing date or schedule your closing with Sage Acquisitions.

7.   When and where should I send outstanding invoices to be paid by the seller?

Invoices should be submitted no later than 10 days prior to the closing to your assigned compliance specialist. All bills must be sent in advance of closing. Please refer to your executed contract email for your compliance
specialist.

8.   Will all closing requests be accommodated?

If the package is uploaded timely and there are no outstanding bills/demands/issues preventing closing, the assigned specialist will work to accommodate your requested closing.

9.   Where do I submit any HUD-1 revisions?

Please email them to the HUD reviewer assigned to your file. Revisions should be sent after your initial package is reviewed. Please do not upload multiple packages to the portal.

 

10. How do I know if the Prelim HUD-1 has been received?

An email notification will be sent to the primary email address on file that is associated with your Title ID.

 

11. What should I do with the Final Post Closing Package?

Within 24 hours of closing, update the Actual Close Date in P260 and then upload the Post Closing Package to
the portal under the
Settlement category and then Final HUD-1 subcategory. Do not use any other category.

12. Who do I contact for general closing related questions?

Sage Acquisitions’ Customer Service Department can assist you with most general closing related questions. In the event they cannot, they will escalate to a closing team member that can assist you.

13. What is Sage Acquisitions’ Customer Service telephone number?
     
Atlanta - 877.369.9018 Denver 

     & Philadelphia - 888.909.5007 

Ċ
Ran Dagan,
Feb 5, 2011, 8:55 PM