Posted by Nate on February 26, 2001 at 08:37:46:
Yes, that should be fine. As long as it is disclosed up front to everyone, the seller is generally allowed to credit the buyer for improvements, closing costs, etc.
You should check with your lender, though, to make sure the amount of the credit is acceptable. This is a credit of over 10% of the purchase price. A more typical figure is 3%-5%. Again, it could be anything, just make sure the lender is OK with it.