How To Structure A Deal With No Money Down!
There is an owner with a property that appraised for 55k but only wants 37k for the property. He is selling without a real estate agent. What if he agreed to raise the price to 50k....Is it possible to receive 13k back minus my 5% down and 3% closing costs? Will the lender go for that?
Its going to depend on the lender. the closing costs will not be a problem, lenders will allow the seller to pay for those. most lenders though do not like buyers getting cash back at closing. they dont like the fact that you got into it with no money down when they are asking for a percent of the purchase price from you, higher risk for you to just walk away and have nothing to lose, except a bad hit on your credit. I have ran into this a few times. you can have an agreement with the seller to pay you x amount of money AFTER closing(yes I know this is technically considered loan fraud so please dont lecture me anybody). or you can ask for the money at closing for repairs and then you can use the money as you wish(and even then lenders may require that money to stay in escrow until repairs are actually made). again it goes back to whos lending, you need to ask these questions before you choose one. some are stricter than others. the only other option is to buy it at his low asking price and turn around and pull out a 90 percent ltv heloc on the equity. wells fargo and some others have no heloc seasoning requirments.