In a HUD-FHA transaction, the sum of the price paid for the property + any costs of closing, repairs or financing (except discounts, if the transaction is not a refinance) properly paid by the borrower. Seller inducements, such as the seller paying closing costs, will be deducted from the acquisition cost. When the transaction is a refinance, all charges connected with the transaction can be included as long as the maximum mortgage amount of the property is not exceeded. In all transcations, the maximum mortgage amount may be increased by the amount of the MIP financed.
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