Posted by Steve (NY) on February 29, 2000 at 17:22:45:
Jami,
I’m by no means an expert on the subject. However I’m closing a deal in March with the same type of situation. However I’m not showing the cash back to be used for down payment. I’m not sure how a lender would feel about that.
Also you haven’t figured in closing costs, ect. Even if you can use the cash back for help with the down payment, you will be spending a lot more than $1,500 for a 90% LTV loan.
Good Luck!!!
-Steve Wardell
Cash back deal… - Posted by Jamie
Posted by Jamie on February 29, 2000 at 11:49:25:
I don’t know if this is all that creative or if I can even legally do it so I was wondering if someone might be able to give me a little guidance.
I’m trying to structure a no money down deal. This is what I want to propose:
4-plex, asking 165,000
GOI= 1,850
Offer 150,000 all cash
However,
Write the deal as 165,000 with 15,000 cash back for repairs or whatever.
So the deal would look like this:
Purchase price= 165,000
10% down = 16,500
90% mortgage = 148,500
I would need to show I have the 16,500 but after closing I could get 15,000 back and can therefore get into the property for only 1,500. cash out of pocket plus closing costs.
This seems a little too easy so I’m assuming there must be some problems with this plan.
Any insights would be greatly appreciated.
Thanks in advance,
Jamie in Utah