The borrower obtaining an FHA loan cannot pay which of the following?

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Multiple Choice

The borrower obtaining an FHA loan cannot pay which of the following?

FHA closing costs involve who can pay which items, since there are rules about concessions and lender-related fees. The tax service charge is a lender-related service used to verify property tax information, and under FHA guidelines this particular fee is not charged to the borrower. Instead, it is typically paid by the seller or covered by the lender through concessions or the loan terms. The other items listed—lender processing and underwriting fees, escrow and title insurance, and discount points to lower the rate—are standard closing costs that a borrower may pay or receive concessions for, depending on negotiations. So the tax service is the one fee that the borrower cannot pay in an FHA transaction.

FHA closing costs involve who can pay which items, since there are rules about concessions and lender-related fees. The tax service charge is a lender-related service used to verify property tax information, and under FHA guidelines this particular fee is not charged to the borrower. Instead, it is typically paid by the seller or covered by the lender through concessions or the loan terms. The other items listed—lender processing and underwriting fees, escrow and title insurance, and discount points to lower the rate—are standard closing costs that a borrower may pay or receive concessions for, depending on negotiations. So the tax service is the one fee that the borrower cannot pay in an FHA transaction.

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