source:
  type: regulation
  id: usda-hb-3555-12.25
  authority: USDA Technical Handbook HB-1-3555 §12.25 — Cash Back To Borrower
  description: "USDA HB-1-3555 §12.25 (Cash Back To Borrower). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-12.25-0
  canonical_id: usda-hb-3555-12.25-0
  section: USDA HB-1-3555 12.25 — Cash Back To Borrower
  description: '12.25 Cash Back To Borrower: SH BACK TO BORROWER 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 no…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.25 — Cash Back To Borrower
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: SH BACK TO BORROWER 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.
    drafter_attestation: Verbatim from HB-1-3555 §12.25 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
