Show money at closing. - Posted by Tim in PA

Posted by DB_ATL on December 15, 1999 at 14:45:31:

Tim,

What kind of loan is this?

Show money at closing. - Posted by Tim in PA

Posted by Tim in PA on December 15, 1999 at 14:10:52:

I need help, I am new to buying investment properties.
I am attempting to purchase a 6 unit building, the owner is holding a second.
My problem is that the underwritter stated that I need to show that I have 14,000.00 at closing, and I don’t have that type of money at this time.
Can I borrroe this amount from the seller to put into my account till the deal closes, or does anyone have any good ideal ???
Thanks in advance.
Tim-in PA

Re: Show money at closing. - Posted by TomC-(MD)

Posted by TomC-(MD) on December 15, 1999 at 17:57:19:

The lender just wants to make sure you have enough reserves to draw upon if needed. It doesn’t have to be cash sitting in your checking account. Many lenders will accept the vested balance of your company retirement/401(k) or any IRA’s that you might have.

Re: Show money at closing. - Posted by Mark-NC

Posted by Mark-NC on December 15, 1999 at 17:28:38:

Tim,
You may be in a bind. Most lenders require seasoned funds into the deal and not money that magicly appeares into your account. The reason behind it is they want the borrower to have some of their own money into it. For the simple reason that if things go bad what would you have to loose by walking out on your mortgage.This is especially true on investment properties.

I know this doesn’t help but it may answer why.
Maybe someone else will come up with something for you.

Good luck.

Mark