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FHA Closing Costs Prohibited to the Buyer

Hello!

My wife and I are putting a contract on an FSBO home and have verbally agreed to a price we are comfortable with and "paying our share of the closing costs". We are pre-approved with our lender for an FHA loan in Texas. Now, in filling out the contract from TREC (http://www.trec.state.tx.us/pdf/contracts/20-11.pdf) I get to section 12 (Settlement and other expenses) and there is the following: 

"Seller shall also pay an amount not to exceed $________ to be applied in the 
following order: Buyer's Expenses which Buyer is prohibited from paying by FHA, 
VA, Texas Veterans Land Board"

Now, again, I've already verbally agreed to the seller not paying any of our buyer's closing costs but the phrasing in the contract makes it appear as though there are actually certain closing costs I am prohibited from paying. I've checked with my lender and they are unable to provide any useful information. What closing costs is an FHA buyer prohibited from paying?


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August 01 2012 - US
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Answers (4)

@Ofe Polack

Verbal offers are legitimate, and this buyer is certainly within his rights to pursue a transaction outside of using an agent. Considering the misinformation and berating attitude of your reply, it is understandable why he might be motivated to do so.

While perhaps he does not yet have a legally enforceable (written) contract, it is obvious by the nature of the question posted that he soon will.

Please post responsibly.
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August 01 2012
Hello,

Please check your messages through Zillow for a private reply.
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August 01 2012
By the way.....there isn't such a thing as a verbal offer.  Unless it is in writing you do not have an offer.  I wish you good luck in navigating an area that obviously is unknown to you, without representation. 
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August 01 2012
Only if the seller is crediting you at closing do you need to fill this section out. just put in $0
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August 01 2012
 
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