Re: Down Payment Question? - Posted by Scott
Posted by Scott on November 09, 1998 at 14:46:02:
From what I understand, if you and your buyer are going through a lender, your $1000 goes toward the loan amount and your buyer’s $3000 goes towards his loan amount. For example, your buyer’s loan amount will be $47000 on a purchase price of $50K, meaning you’ll receive your $50,000 just as your seller will get $50K and your loan is $49K after you put $1K down. I hope that makes sense. If it’s seller financed, and you gave the seller $1000 down with a cashout in one year or something, then your buyer who put $3000 down would profit you $2000. Of course your cashout date would be less than the seller gave you so you could pay the original seller.
If someone else has a better explanation, please do, because we just bought a house to live in and our $5000 down went to the purchase price of $149K, making our loan amount $144K and the seller received her $149K. Does that make sense? I hope!