When purchasing a property at closing?
example price:95,000.00
apprasial 108,000.00
and the buyer can get the apprasial price as the loan amount he/she requested. After downpayment, and closing cost of say example 5,000 down and closing 3,000 can the buyer receive the remaining loan proceeds as cash back to buyer. Which may be 5,000. according to this example? Any help would be greatly appreciated.
I can yes... I closed on my first rehab yesterday. Purchased for $45K with an ARV (based on appraisal) of $78K. Lender (bank) gave me a 75 LTV 6-month interest only construction loan at 5.5% (1 point origination).
Walked out at closing with check for $12.5K with estimated repairs at about $9.5K.
Better the HML all day long.
cash back from whom for what?
seller
lender
agent
other?
When purchasing a property at closing?
example price:95,000.00
apprasial 108,000.00
and the buyer can get the apprasial price as the loan amount he/she requested. After downpayment, and closing cost of say example 5,000 down and closing 3,000 can the buyer receive the remaining loan proceeds as cash back to buyer. Which may be 5,000. according to this example? Any help would be greatly appreciated.
if your purchasing the property, the bank will use the lower of the appraisal or purchase price to establish the loan.
I can yes... I closed on my first rehab yesterday. Purchased for $45K with an ARV (based on appraisal) of $78K. Lender (bank) gave me a 75 LTV 6-month interest only construction loan at 5.5% (1 point origination).
Walked out at closing with check for $12.5K with estimated repairs at about $9.5K.
Better the HML all day long.
What the previous poster was referring to was a rehab project...