Down Payment Question? - Posted by Martin Buckley


#1

Posted by Joe Kaiser on November 09, 1998 at 16:20:52:

If there’s a loan in place for $50k and your paying $1k down, you’re paying $51k for the property.

Instead, you sell for $53k with $3k down. Loan stays the same.

Or better yet, just sell your contract for $2k and let him do your deal.

Joe


#2

Down Payment Question? - Posted by Martin Buckley

Posted by Martin Buckley on November 09, 1998 at 14:22:46:

If I buy a house at $50,000 with a non-qualifing loan and my
down payment is $1,000 and I resell the house to a new buyer
before closing for $3,000 down,how do I profit the difference of $2,000 if the down payment as far as I understand will go towards the purchase price of the house
and if that is the case and I receive $3,000 as a down payment wouldn’t that mean the new buyer only has to pay off
$47,000 to purchase the property and if so how does that work so that I still profit $2,000 and the original seller
gets his $49,000?


#3

Re: Down Payment Question? - Posted by Scott

Posted by Scott on November 09, 1998 at 14:46:02:

Martin,
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!