Posted by ron on March 15, 2006 at 23:10:00:
As I researched this term on 20 different sites
what I saw that they had in common is that you would be interferring in a way with the borrows real ability to qualify, to the point where your commission rebate is what helps them to qualify for the loan whereas without it they wouldn’t , this comes up a lot with FHA loans and inducement where the seller pays the down payment.
I guess the way I meant to phrase the question is that the borrow can easily qualify for the loan on their own merits, and the rebate is something extra, a thank you, it came out of the agents commissions, wouldn’t that really mean that the borrow is now stronger with more money in their pocket?
I just noticed in all of the articles they all talked about down payment assistance, I meant to give an example where a buyer can clearly qualify on their own where the realtor gives the rebate or not.