My Experience - Posted by John Katitus
Posted by John Katitus on March 25, 1999 at 01:33:29:
I am just now cashing out on six L/O’s, with tenant/buyers getting new mortgages.
All have used their deposits as part of the down payment. We carefully documented their deposits, getting money orders or bank checks and copies of my deposit slips. Only one lender requested to see the documentation.
Did you tell your buyer that the $2500 would count as part of the down payment?
My current cashouts are being done as refinances of Land Contracts, even though they were L/O’s. That way they can lend X% of the new appraised value and disregard the sale price. The difference between the appraised value and $72,500 becomes their equity (down payment), and might even get them out of FHA or PMI if the appraisal is sufficiently high.