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Is it permitted for a USDA loan to consider the home inspection a closing cost? Seller agreed to pay a % of purchase price toward the buyers closing costs. Actual closing costs came in under the % agreed to by seller.
That's a lender by lender preference. I've had several lenders agree to allow it since it is money spent, and other lenders won't consider it since it's not required to obtain an inspection. Ask your lender.