Realtors contributions towards closing (Houston, Dallas: for sale, real estate, credit)

[cra_z]

Hello,
I am looking for some information on a realtors contribution towards closing. We are closing in a couple of days, and the lender now tells us that there is a limitation on the amount that a realtor can contribute towards the closing. Are there any guidelines used to determine this amount? Our closing costs are much more than what the realtor is contributing. Why should be forego on some of the amount?

[kreeyax]

Never heard of a realtor contributing to closing costs. Do you mean the seller contributing? Some lenders limit the amount of the seller contribution to closing costs to 3% or so of the sale price (or loan amount?) of the home. So for a $150K home, for example, the seller may only be able to contribute $4500 towards the buyer's closing costs.

[phaze]

Yeah most likely means seller contributions.

Realtor contributions..yeah right.

[Txgal33]

Never heard of Realtor contributions. Heard of realtors giving back some or all of their commission to a builder to get the builder to pass that on to the buyer.

[Houston321]

Realtor kickbacks happen every day. Either part of the realtor's commission is credited at closing on the HUD if allowed. If not, the realtor gives the buyer cash after closing.

[davidtk]

Yep - we had an offer on our prior house where the buyer's realtor was giving 1% back to the buyer. It didn't show up until we got the settlement statement. It's transparent to the seller, as I understand it.

[Dougishere2]

Originally Posted by Houston321

Realtor kickbacks happen every day. Either part of the realtor's commission is credited at closing on the HUD if allowed.


This is a true statement other than I have never heard of limits to this


If not, the realtor gives the buyer cash after closing.

This is Illeagle cannot happen legaly.

[Houston321]

You are incorrect. Realtors rebate part of their commisison to buyers all the time. Most of the time it is disclosed on the Hud Statement and it is not illegal. Others give it back after closing.

Simply look at some of the ads in local newspapers advertising 2 percent back on new home purchases...etc. Here are a few examples of the hundreds advertised out there, just in Houston alone.

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[Dougishere2]

RE_READ what I wrote. A realtor giving cash back to a borrower after the closing is illeagle!!

[wstaffor]

Originally Posted by Dougishere2

RE_READ what I wrote. A realtor giving cash back to a borrower after the closing is illeagle!!

I'm not sure what an "illeagle" is...a sick bird maybe? If you're trying to say ILLEGAL, then you're still wrong.