Can we apply lender credit to reduce mortgage balence?

This varies by lender. My company does allow principal reduction with either seller or lender credit. I have worked at lenders in the past that do not allow this.

Hello, unfortunately you cannot apply lender credit to the mortgage balance. You can sometimes, depending on the lender receive a principal curtailment up to a certain percentage. This in layman terms would be a reduction in mortgage balance but technically not called that.

This varies by lender.

It depends on the situation and the lender, some may allow a principle reduction.

No... It can only be used to offset closing costs.