OfflineI am having a hard time with getting a loan. The only loan I can get is for 50k+ I am trying to get houses for under that price. Can I add something to the contract stating that the seller has to give me a refund at closing?
Example: I find a house for 50k I offer 40k and put in the contract that I would get 10k(say for repairs) at closing from seller? SO my loan would be the right amount and I would have capital for the next deal. As long as the property cash flowed this would be awesome.
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I would just say be careful with that scenario because it sounds really close to mortgage fraud. I would double check that scenario with a closing attorney.
Stephan Roberts
"In absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia!"
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Does this loan amount = to the mortgage that you'd qualify for? What type of loan is it - mortgage, home equity, etc?
Your bank / credit union / funding source may have different rules.
What people try to do is buy the property with cash, rehab, and then refinance. In my area, the bank may refinance the property for up to 75% of the assessed value of the home (if less than 100k, otherwise appraisals are needed).
The more thorough the question, the more thorough the answer.
Please fill out your profile with as much info as you're comfortable with.
Thanks.
Loan is below what I qualify for. I am looking to do a mortgage. I would consider mortage rent refi but I am afraid that the cost would be too high.