We got a similar deal: FMV much higher than the purchase price. But since we were buying it as a residential to get better rate, our mortgage bankers told us we cannot do that.
However I did hear an investor said that if it's a commercial property, you could get a loan at 70% of its actual value. For your situation, you could probably get 21, as long as you can break-even or get positive cash flow with the loan/rate combination.
i know a guy who does owns a business dong this as a service for people, assisting them with down payment money or whatever. i was gonna buy a house for 80k. the lady was selling it to me for $60k and i was gonna get the extra less the closing costs. you have to funnel it through a non profit to do it legally. in addition to the normal sales contract, the seller signed a contract saying they would pay the loan company's non profit company a fee equal to the excess of $60k as an assistance fee. then he would give that money to me. of course no real estate agents were involved. i've asked them about this before and they freak out about any money transfers that aren't recorded on the hud.
Why don't you just offer the FMV price and state in your contract a 'cash allowance' for closing costs, paint, carpet, repairs, etc. to get the difference? It's commonly done here in Texas.
In PA, we can get up to 6% in seller assist. What I've done in the past to take care of closing costs and purchase a home with zero down is offer asking price + 6%, and have the seller "give back" the 6% through seller's assist. As long as the appraisal comes at the asking price +6% or higher it works out fine.
Another option is to set up a trust with you as the beneficiary and have the trust make an offer to buy the property for $17k and then you personally (or your LLC or corp) offer to buy the prop from the trust for 30k. This way, you'll get your loan based off $30k and profit that your trust makes comes back to you.
You'll run into seasoning issues so you'll need to make sure that you deal with a lender that doesn't care.
You should also talk to your accountant to find out what increased tax liability you may have.
If you do not want to use a trust or do not unerstand it---simply use a partner that you trust. Have them make the offer for 17k and you buy from them for 30k.
I don't know about the non profit stuff but I think that anyone can get $$ back at closing. Get an 80% loan and pay <70% for the house and youll get a check.
We got a similar deal: FMV much higher than the purchase price. But since we were buying it as a residential to get better rate, our mortgage bankers told us we cannot do that.
However I did hear an investor said that if it's a commercial property, you could get a loan at 70% of its actual value. For your situation, you could probably get 21, as long as you can break-even or get positive cash flow with the loan/rate combination.
i know a guy who does owns a business dong this as a service for people, assisting them with down payment money or whatever. i was gonna buy a house for 80k. the lady was selling it to me for $60k and i was gonna get the extra less the closing costs. you have to funnel it through a non profit to do it legally. in addition to the normal sales contract, the seller signed a contract saying they would pay the loan company's non profit company a fee equal to the excess of $60k as an assistance fee. then he would give that money to me. of course no real estate agents were involved. i've asked them about this before and they freak out about any money transfers that aren't recorded on the hud.
Why don't you just offer the FMV price and state in your contract a 'cash allowance' for closing costs, paint, carpet, repairs, etc. to get the difference? It's commonly done here in Texas.
In PA, we can get up to 6% in seller assist. What I've done in the past to take care of closing costs and purchase a home with zero down is offer asking price + 6%, and have the seller "give back" the 6% through seller's assist. As long as the appraisal comes at the asking price +6% or higher it works out fine.
Another option is to set up a trust with you as the beneficiary and have the trust make an offer to buy the property for $17k and then you personally (or your LLC or corp) offer to buy the prop from the trust for 30k. This way, you'll get your loan based off $30k and profit that your trust makes comes back to you.
You'll run into seasoning issues so you'll need to make sure that you deal with a lender that doesn't care.
You should also talk to your accountant to find out what increased tax liability you may have.
If you do not want to use a trust or do not unerstand it---simply use a partner that you trust. Have them make the offer for 17k and you buy from them for 30k.
I don't know about the non profit stuff but I think that anyone can get $$ back at closing. Get an 80% loan and pay <70% for the house and youll get a check.