FHA Not Allowing Seller To Give Me Security Deposits

[Will Fahmy]

I'm using an FHA loan to acquire a duplex. I'm a few days from closing and when the title company sent out the settlement sheet with the security deposits and prorated rents as a credit to me from the seller my bank went crazy.

First they said I need an addendum stating that the seller is crediting me.

Then they said I need an addendum nulling that addendum because the seller can't give me that as a credit. FHA doesn't allow this.

How is it possible that FHA didn't account for security deposits and prorated rents? It can't be? I'm guessing my bank is wrong. Does the FHA guidelines say anything specific about this?