Posted by Mike Daly (GA) on March 25, 2002 at 22:41:10:
You can write the 33K difference as a decorator’s allowance in the contract, although I’m not sure if your lender would have a problem with that. You can probably find a 100% loan but the interest rate will be substantially higher.
is this legal - Posted by gmanMD
Posted by gmanMD on March 25, 2002 at 20:44:27:
i have a property that i am buying fron a desperate seller house appraise at 240k seller owes 207k on first and second this is all he wants out of the house went to look at the house to see if it had any potential and liked it so much decided to buy it for my personal residence so i am structuring contract so that i am paying 240k for the property the seller is paying al of my closing costs i am putting down 5 percent although i am trying to find a 100% stated loan at closing seller will be giving me every thing he nets i figure if i have to put down 5% i will get my 12k back plus another 8k i am going to net about 22K from the sale of my current residence so that will be about 40k i can use for other deals how should i set this up so that i am covered at closing and also is there anyway i can do a 100% stated with a 640 middle credit score thankds in advance for any replys
Re: is this legal - Posted by JoeS
Posted by JoeS on March 26, 2002 at 10:53:33:
NO! Unless you do as Mike says. Red flags all over. Lenders do not like to have info withheld from them. Buy it like JohnBoy recommends, he knows what he is talking about. By the way, it would be a good idea to take a word processing class or two! Hope this helps.
Re: is this legal - Posted by JohnBoy
Posted by JohnBoy on March 25, 2002 at 23:24:17:
Since the seller doesn’t want anything out of this then just buy it subject to. Then in about 6 - 12 months you just refinance it to pay off his underlying loans. You will save more in closing costs by doing it this way and getting refinanced VS. a new purchase loan is easier to qualify for. Plus you can get refinanced and be able to pull cash out from the equity without having to jump through all these other hoops to get your cash out on doing a new purchase.
Getting about 5% back from the seller for concessions is within reason. Trying to get back $20k is going to raise flags with the lender. Buying subject to and refinancing later after you have title in your name would be the easiest and best way to go on this.