I would agree it is misleading if the lender does not know, but money back for legit repairs has been a part of loans for years (as I remember it can be up to like 10% or something) a loan expert or realtor could answer this (comments?), plus having a seller pay points is totally legit. Basically, having the seller pay your fees is legit money in your pocket and lowers your payment a win/win for buyers. My point then being that money in hand is more attractive to buyers then a lower price, and this string was about the best way to sell a home in this market. As a recent buyer, I felt that this was relevant.