Posted by Rob FL on March 20, 1999 at 07:45:00:
So in other words, you want to roll the closing costs into the financing and have the bank finance the entire sales price (100% LTV) but have them think they are only financing a portion of it.
Questions similar to this have been asked many times.
The answer is if you intentionally deceive a lender by altering their HUD-1 statement to reflect the transaction differently than what is really going on, it is FRAUD and the buyer, seller, realtor, and title company could get nailed with criminal and civil penalties. Also, most of the time you will have to sign a document that says that buyer and seller don’t have any off the record side deals going on. Lenders know that some people are trying to scam them in this way.