I have two scenarios I'd like opinions on.
1) State housing loans we pay a "reservation fee" to reserve funds at a certain interest rate. I think this should be part of the Origination Charge in Block 1 and Line 801, but can't find anything to back me up on that.
2) The state housing program also gives the borrower 3% in gift funds to help with closing and the borrower receives a slightly higher rate. I think this should be shown as a credit to the borrower in the 200 series on the HUD. Anyone agree?
I don’t think either scenario should be reflected in Block 2 as a specific charge or credit.
I can't find anything in the Q & A or HUD instructions that directly support my opinions so would like some help there too.