Posted by JD on December 15, 1999 at 16:25:52:
The actual FHA wording is that there are some loan fees that it is prohibited to charge to the Buyer. Many Real Estate agents, either intentionally or unintentionally, misquote this to say that there are some loan fees that the FHA requires the Seller to pay. The loan agent will send docs to Escrow with the instructions that the Seller be charged for “Document preparation” and “Underwriting fee” (usually about $400). They get away with this about 90% of the time (there are not many people that would back out of a contract over $400), so they can get rather brazen about it. I try to spell out from the start in a counter offer to the purchase contract what loan fees I will pay, but despite my best efforts I still encounter problems.