realtor rebate more than closing costs (escrow, approved, credit, fees)

[georgemasonsun123]

I have some leftover realtor rebate(more than closing costs) on my new home purchase loan. If I take the remaining amount from the realtor I think that would make it taxable and trying to find out ways to avoid it, legally.


My closing costs are low because I haven't elected to have an escrow account and no prepaids are included as part of the closing costs. One way to increase closing costs is to setup escrow account and have prepaids included. But, I prefer saving the extra tax money in a HYS account and pay the taxes myself. Even I pay taxes myself, those are tax-deductible. So I would not gain much if I include them as part of the closing costs.


One advantage I could see from setting an escrow account is that I could limit my AGI, so that I could qualify for $7500 tax credit, if that gets approved.


I already am paying the maximum possible buydown points too.


Anyone know of any other ideas, or if my thinking doesn't make any sense?

[SmartMoney]

Home warranty?

Already getting a survey?

Prepayment of HOA fees? Like, pay ahead another 6 months.

Landscaping? Go pick out some bushes and get an invoice to bring to closing (check w/ lender and realtor on this one)

Do you have a dollar amount? I could be throwing nickels where silver dollars are needed.

[georgemasonsun123]

Originally Posted by SmartMoney

Home warranty?

Already getting a survey?

Prepayment of HOA fees? Like, pay ahead another 6 months.

Landscaping? Go pick out some bushes and get an invoice to bring to closing (check w/ lender and realtor on this one)

Do you have a dollar amount? I could be throwing nickels where silver dollars are needed.

It is around $5000.

[SmartMoney]

That's a pretty big rebate shortage. The lender will most likely limit what kind of concession can be shown on the HUD, too.

[nsumner]

Can the Realtor give you the rebate as an Amex card?

[nsumner]

I just had a clarity moment. Ignore my previous post. all monies exchanged have to be reflected on the HUD1...