NO! Unless the lender allows for that. There are some that lend off the appraised value not the pruchase price, not very many but a few. If you do what you propose and get caught…loan fraud! Will you get caught? Maybe, maybe not! The best way is not to try.
I am currently looking for a house with no down in Alabama. My mortgage company will not finance a 100%. Is it possible to have the seller rebate the down payment to me at closing? For example: the home appraises at 200,000. He is settling for 160,000. Can we show the house selling at 180,000 and let him rebate the 20,000 at closing?
I think the “rebate” part is what might get you into trouble. What they (realtors) will do around here is have the owner take a second mortgage for the 20K then after the deal closes the former owner forgives their mortgage and you don’t have to pay for the second mortgage thus leaving you with a first mortgage for 160K just like you want.
I have several 100% loan programs.
There are several ways you can go about doing this.
There are also ways to have the seller legally help you with the purchase as well.
Perhaps I can help you.
Send me an email with the particulars…
Thanks