Confused (purchase price vs. appraised value) - Posted by SoCal_Dennis

import · August 1, 2003, 3:09pm

Posted by lo on August 02, 2003 at 19:39:01:

Ask your Mortgage Broker for a Lender that allows
up to 6% “seller’s consecions” On a $200,000 house,
that’s $12,000 the seller can give you back to pay
your closing costs and decorating.

import · August 1, 2003, 3:09pm

Posted by SoCal_Dennis on August 01, 2003 at 15:09:50:

I don’t understand how to get cash back at the closing when lenders only loan on the purchase price or appraised value, whichever is lower.

I know when I bought my personal house recently, the lender would only loan 80% of the purchase price. There wasn’t any way for me to get cash out of the deal even though the price was under market value. But at least I’ll get some when I re-finance. =)

So, the next thing I want to do is find some fixers to rehab, but if the banks are only going to loan me 80% of purchase, how do I get the extra cash at closing to do the rehab? I’m a little confused here.

Thanks in advance.