FAQ Content
Cash back at closing on a purchase transaction cannot exceed the amount the applicant(s) has put into the transaction, such as:
- Earnest Money Deposit (EMD)
- Any fees Paid Outside of Closing (POCs)
- Home Inspection
- Termite Inspection
Any amount over what the applicant has paid should be applied as a principal reduction, first to the DAP loan (if applicable), otherwise, to the first mortgage.
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