Posted by JEFF on August 24, 2003 at 11:46:07:
You have to get a new mortgage to free up his VA. If the house is valued at 104 you should be able to get 80% loan on appraised value. That willave you 5K short plus some closing cost. A lot of times if the Appraisor knows the sales price they will bump a grand ortwo in order to make the deal work for the lender. If you are still short a small amount ask if he will take a 90 day note to pay the rest. You can get a personal loan to pay him the balance. I think if you can get the house at 85% of value that is a great deal so you should move on that. Inspect the house good to be sure of no surprises.