Hard Money And Auctions
How soon do most hard money lenders start collecting monthly payments from you? One of my concerns is the houses may not sell or be assigned as fast as I would like.
What is the turn around time when you sell your home with private auction houses?
Yes it is legal, I believe it is up to 6%.
From my experience as a mortgage lender in the Chicago, Illinois area, many lenders allow the seller to pay between 3-6% of the purchase price towards closing costs. I can go up to 6% on my loans.
The hard part would be getting a lender to do the second thing you want to do regarding getting cash back at closing. The way you presented the question, the answer will be "no". Virtually no lender will allow the seller to pay 3 months worth of mortgage payments for you.
However, you may have better luck with 1)seller paying you deposits from renters 2) seller leaving a "decorating escrow".
But as has been mentioned already, the lenders really prefer to see you acquire the property and then refinance to obtain your cash. Altough it is possible to do a quick cash out refi after your closing, you will most lenders either unwilling or leery of giving a cash out mortgage loan on "unseasoned" properties--but it is possible to get such a loan, especially if credit is good. There are also programs available that will minimize your mortgage payment initially by charging either interest only or an artificially low interest rate. Keep in mind that even those options will have their own disadvantages.
good luck...
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