Posted by Natalie-VA on June 11, 2007 at 10:56:13:
Digby,
As long as her lender allows it and everything is disclosed on the HUD, there shouldn’t be a problem. With that said, I don’t know of any conventional lenders who will allow this. It’s possible that she is getting rehab financing or commercial financing where the lender will allow it, but again, it needs to be on the HUD in order to keep everyone out of trouble.
–Natalie
Cash out Equity at close of Purchase - Posted by Digby
Posted by Digby on June 07, 2007 at 12:58:59:
I’ve got a client who wants to purchase a home that is over 100k under market value. Purchase price: $349,900 & 4 model match comps all at over $550k.
She is an investor and wants to structure the deal such that at the close of escrow, she can collect that equity in the form of cash.
I’m confident that the property will legitimatly appraise at over $550k.
Obviously, I don’t want to do anything questionable to complete the deal and get her that money, but am not opposed to creative “out of the box” ideas.
Does anyone have any suggestions with how I can pull this off? I don’t want to lose the business, but I want to protect myself and my client in the process. Thanks in advance for any thoughts…