Originally posted by @Jay Hinrichs:I see those advertised in the scottsman guide just wonder if anyone can actually get one Rebuilding CR usually begins with a PrePaid card. 

Discount points are pre-paid interest on a loan, again 1% of the loan amount is one point. 

It appears you my be past the mark of talking with section 8, therefore, you may need to take legal action.A cheaper route to get legal help is to sign up for pre-paid legal.

Then do it again.What we do when we realize that some of the funds from the borrower are crowd-sourced is collect some pre-paid interest at closing to mitigate our risk (since some of the funds are un-sourced).

So make sure to speak with your lender in advance if that is an issue.The second caution is that you do not want to try and sneak in a bunch of pre-paid construction just to qualify those fees as you can only pay forward to the extent it is reasonable given the circumstances and the "normal" way things are done. 

-Closing costs-Prepaid taxes-Home utility bill expenses-Repairs 

Thank for the support everyone.Points / Origination Fee$ Prepaid Hazard Insurance$ Prepaid Flood Insurance$ Prepaid Property Taxes$ Annual Assessments$ Title and Escrow Fees$ Attorney Charges$ Inspection Costs$ Recording Fees$ Appraisal Fees$ Other Fees / Charges$

Is some of the 20K going to closing costs and prepaids and not actually a down payment?

In that case it can only be used to offset your closing cost and prepaids.If your closing cost and prepaids comes out to be lesser than that of the seller credit, then we show the seller credit same as the total closing cost as we can't go above that.

If this lender is now mentioning its now 3.875% + .80% (current FHA MI if you have atleast 5% equity) then your effective rate is now 4.675% which is still over 1.125% lower than your current loan) so its a definite interest cost benefit.The other factor you'll have to resolve is the closing costs and prepaids.