Legal Question in Real Estate Law in California

fha issue

I have just gotten a refi under fha guidelines. If the loan officer charged me 1 pt then 3 pt buy down is that against fha guidelines? shouldn't it be legally 1 pt for origination then 1 pt for buy down only?


Asked on 5/04/08, 10:20 pm

2 Answers from Attorneys
Mitchell Roth MW Roth, Professional Law Corporation

Re: fha issue

Check with your local office of the FHA, which is part of HUD.

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Answered on 5/06/08, 6:01 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: fha issue

The one point for origination is easily identified as the max, but I could not find any guideline, after a modest amount of research, for the buy-down. If the buy-down itself is within FHA guidelines, I'm not sure that the charge for it is also separately subject to any guideline. If you feel you were overcharged, I'd suggest a call to the FHA itself; their regional offices must have hot lines for questions (or maybe it can be done by e-mail). My guess is there is a guideline for the buy-down itself, but that it is not expressed in terms of a maximum allowable points.

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Answered on 5/05/08, 12:35 am


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