Posted by lukeNC on May 31, 2006 at 12:14:02:
The financing lender must be in full awareness of what you are doing here…if they are and are OK with it, go right ahead.
Very rarely will a lender let you take money back from a purchase money closing in that amount UNLESS it is a multifamily deal or some other commercial deal, and even then it is rare.
if the underlying lender doesnt know, or if you are trying to hide the fact that you are taking money back, its a fraudulent transaction with huge and horrible consequences.
I’ve seen this done before though: you buy the home at the discount price then do a cash-out refi a week or so later. Lender knows exactly what’s going and has no problem.
Why the difference? I dont know…but, he who has the gold makes the rules.