12.27 CASH BACK TO BORROWER (05/17/17)

Owned by Marsha Freeman
Last updated: Nov 17, 2018 by Kacey Olson (Unlicensed)
1 min read

© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook

Lenders must apply any excess funds from the construction proceeds to reduce the principal balance of the permanent loan. The borrower is not to receive funds after closing. In the event funds remain after closing from unused prepaid expenses including, but not limited to per diem interest to the end of the month on the new loan, hazard insurance premium deposits, and/or real estate tax deposits needed to establish the escrow accounts, the borrower may receive cash back in the event the borrower paid these items from their personal funds and they do not represent loan funds.