USDA Technical Handbook HB-1-3555 §12.25 — Cash Back To Borrower

usda-hb-3555-12-25

USDA HB-1-3555 §12.25 (Cash Back To Borrower). Gap-fill (verbatim).

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Verbatim provisions from USDA Technical Handbook HB-1-3555 §12.25 — Cash Back To Borrower — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

USDA HB-1-3555, Chapter 12, § 12.25 — Cash Back To Borrower

Effective 2025-05-05 · USDA chapter revision · Procedure Notice 640

The borrower is not to receive funds after closing. Lenders must apply any excess funds from the construction proceeds to reduce the principal balance of the permanent loan. In the event funds remain after closing from unused prepaid expenses including, but not limited to, per diem interest to the end of the month on the new loan, hazard insurance premium deposits, and/or real estate tax deposits needed to establish the escrow accounts, the borrower may receive cash back if the borrower paid these items from their personal funds and they do not represent loan funds. Funds that remain in the contingency reserve account after the completion of construction may be utilized for an eligible loan purpose or applied to the principal balance of the permanent loan.

Source: USDA HB-1-3555, Chapter 12, § 12.25 — Cash Back To Borrower · source URL · snapshot 0466acd1ea2d17a4

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Source of record: https://claudeforcompliance.com/regs/usda-hb-3555-12-25/ · register usda-hb-3555-12-25 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.