Posted by Nate on February 26, 2001 at 08:37:46:
Yes, that should be fine. As long as it is disclosed up front to everyone, the seller is generally allowed to credit the buyer for improvements, closing costs, etc.
You should check with your lender, though, to make sure the amount of the credit is acceptable. This is a credit of over 10% of the purchase price. A more typical figure is 3%-5%. Again, it could be anything, just make sure the lender is OK with it.
$$ back at closing for improvement? - Posted by batpro
Posted by batpro on February 25, 2001 at 17:04:24:
Today I wrote a purchase agreement which the seller accepted.
The seller agreed to sell single family home for $33,900
I asked the seller if we could list the purchase price for $38,000 and then we wrote on the offer in the “other section” of the purchase agreement: At closing seller agrees to give buyer $4,100.00 for home improvements.
I have not yet talked to my mortgage broker since today is Sunday.
My question: Is this accepted on the secondary market?
If not, how can I get the $4,100 for house improvements (or cash in my pocket)?
The seller needs to pay off existing mortgages of $32,500.
Any help you could provide would greatly be appreciated.
Thank you,