Question About Leaving The Closing Table With Cash In My Pocket
This is my first time ever doing a deal like this. I needed to come up with 5% down and also money to fix a roof on this duplex I am buying. I don't think I quite understand all of this. They listed the house for 88,900. We finally came to an agreement of 94,000 with 10,000 at closing. So my question is what will exactly my loan amount be for? Will it be 94,000 minus the 5% down, which would be 89300? Is that how this works or am I totally wrong. Thanks.
Hi,
It looks liks you were involved in a bidding war. They are asking $88,000 and you paid $94,000. If so, then your loan would be for $89,300, that is $94,000 minus the 5%.
In addition, you will also have to come up with the closing costs associated with this deal.
Good Luck!
Bottom line is it does not work for you. Your relative wants 100 and you can only get 70. What the bank or broker is sugesting is the the seller give you the 30k as a gift of equity. This will work if your relative will drop the asking price by 30k and let you use the equity.
Lori
[addsig]
We will get the gift of equity in order to get the house. Are there tax implications for the $30k gift of equity? Not sure if you can answer this, but are we doing the right thing by taking so much of the equity, mostly because the house is paid off. My mom had to move out because of her age and I am trying to do the right thing. Are there better options? The eventual goal is fix up the property (~$6k) and sell it, maybe for what it worth. Comps in the area $85-115k.
You could get a gift of equity and then get a second on a HELOC for 100LTV after you've purchased it.
Is there any magical number with the 70K that you plan on financing? Most lenders require that you have at least 20% gift of equity. Of course you can always have more. Do you not quaulify for a loan larger than 70K?