Final answer:
The cost not considered a real estate loan closing cost is a tax monitoring service. This service is for post-closure monitoring of property taxes and is not a direct closing cost covered by loan funds.
Step-by-step explanation:
The cost that is NOT considered a real estate loan closing cost or transaction fee, and cannot be paid with FSA FO loan funds is d. A tax monitoring service. Loan packaging or consultant fees, attorney's fees, and title insurance policy are all typical expenses associated with closing a real estate loan. However, a tax monitoring service is not a direct closing cost but a post-closing service that typically monitors and confirms property tax payments and is not covered under loan funds intended for closing costs.
Escrow services are often involved in the home buying process to help manage and simplify the payment of regular expenses such as home insurance and property taxes, by integrating these payments into the monthly mortgage payment. This simplifies the homeowners' financial management but is distinctly separate from the actual closing costs of a real estate transaction.