Vendor Rebates Must Be Disclosed

Vendor-Rebates-on-Closing If you buy a home and the seller (or developer) rebates you money back on closing, you must disclose this to your lender.

If you don’t, it can be considered mortgage fraud. 

It doesn’t matter if the seller calls it a “rebate,” “renovation credit,” “loan to purchaser” or whatever.

Moreover, you can’t always expect to hide behind lawyer-client privilege to keep the lender from finding out about it.

Here’s an interesting story by Move Smartly that discusses the issue further:  Buying Inducements Must Be Disclosed

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