Question On A 100% LTV
I Got approved for a 100% LTV . With 0 down and no upfront cost .Now If I buy a house below appraisal , will they still loan 100% of the value and let me get cash for the equity and do some small updates? and if so how would I do it ? Thru the contract with the seller or how?
[ Edited by edauto on Date 03/08/2005 ][ Edited by edauto on Date 03/08/2005 ]
Greetings edauto,
Typically, lenders base the LTV or CLTV on the lesser of the appraised value or purchase price. So, if you found a house below appraised value, they would only lend on your actual purchase price.
However, many will allow a credit from the seller to you for 2%-6%. But usually, it can only be applied to non-recurring closing costs.
You should check with the lender that approved you to see if they would allow a seller credit, and if it could possibly be applied toward anything else.
HTH