Financing With A Maintenance Credit
My partner and I are buying a 4-unit building that requires some serious repairs. In fact we have agreed on a $25,000 Maintenance Credit (original offer price was $330,000). We would like to have that amount subtracted from the amount we being to closing.
In this scenario everything works great because we get to bring less money to closing and then apply them towards repairs.
However after talking to a mortgage broker I am under impression that many lenders will not allow that. In fact, they will want to us to bring to closing 10% (if we want to do 90% LTV) of the (Purchase Price – Credit Amount) + Credit Amount. Then Credit amount goes to an escrow account and we get reimbursed from that account as we do repairs.
Well maybe I misunderstood something but if that’s the case, it really doesn’t make sense to me as an investor.
Did any one ever come across this problem? 
Do you know any lenders that will allow to subtract Maintenance Credit from the down payment amount?
Thank you very much!!!
Alex
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