Question About Cash Back At Closing And Seasoned Cash
Hi I have a hypothetical situation that I would like to know if it is legal or no since I don't have much experience at this. Say I have a home to sell. We'll say the asking price is 100k. Now the appraisals are done amount comes back ok. Teh lender will finance at 90% LTV with the buyer coming up with the remaining 10%. Teh lender doesn't require seasoned cash for the down payment. Now me as the seller trying to help the buyer agrees to put up the 10% down. Since it is unseasoned the lender doesn't care where it comes from ( am I correct on this when dealing with unseasoned cash?). Now I also agree to pay closing costs and have say 2000 cashback for repairs at closing. So now I am down to an actual price back to me of somewhere in the 70k's. I only have say 50k invested in the property. So I make my money, help the buyer don't go over the lenders 6% rule for concessions. Is this kosher or does me giving the down payment count towards the 6% even though the lender doens't care where the down comes from make it not kosher. If it isnt kosher can anyone give me advice on modifying the scenario to make it aboveboard? I dont' want to get into anything illegal just trying to come up with tosme creative solutions to make the properties more attractive to buyers.
Thanks
Joe
It all dpends on the lenders policy on gifted funds from non relatives....or maybe their lender will consider a gift of equity...or have the buyer sell you something with a Bill of Sale for $10,000 saaayyyyyy...a very expensive, luxurious, nice cheap watch. No silent seconds though! Hope this helps!
I have a lender friend that has an arrangement with a charitable organization. If someone gives the charitable organization say 5k, the organization takes a percentage and the rest is a gift to the buyer to help them get into a particular home.
Brenda
Thanks for the thoughts anyone else have any thoughts on the matter?
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