Posted by Matthew on September 12, 2007 at 07:54:01:
Jake-
a non conventional loan is the only one that is going to allow the seller to hold the balance if you using a 250k sale price. is the home free and clear??if so then yes you can buy it for 100k and finance the whole amount 100% thru a first time homebuyer program as long as you pass the underwriting. What goes on between you and seller is none of my business.
Friend of family just wants out.equity$$$ - Posted by Jake
Posted by Jake on September 10, 2007 at 08:12:25:
A very good childhood friends parents looking to sell home. They already own new condo and want out! House is not on market and they have offered me only this ‘deal’.
Sale price–250k
worth–320ish
arv–350 to375k
repairs–10-15k
my credit-630ish debt-25k $on hand–$0
If we dont work something out they will put it on market(soon)for 300k and sell within 30-45 days,most likely. With no cost and low risk,they r willing to help me in any way they can. I’m not in a good financial spot to do this;however i see an opportunity I don’t want to pass up. Prop is in WI blocks from a college campus in a nice neighborhood. Homes sell very quickly there yr after yr.
ANY and ALL advice greatly appreciated!!!
Thanks in advance.
Don’t want to miss out,
-Jake
Re: Friend of family just wants out.equity$$$ - Posted by Matthew
Posted by Matthew on September 10, 2007 at 11:27:23:
no offense Jake but how are you going to PAY for the loan?? I wouldn’t threaten a friendship over this. if you can pay $2,500 a month, which means you would need about 5,200 amonth income,you would be able to get it done. not sure what the FHA limits are in your area but that would be a good bet.Do they want you to pay it off or are they offering/ willing to hold the mortgage?
Re: Friend of family just wants out.equity$$$ - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on September 10, 2007 at 11:16:45:
FHA loan with them giving gift towards DP and Closing costs.
Just find an FHA approved broker.
Re: Friend wants out.equity$$$(cre financing???) - Posted by Jake
Posted by Jake on September 11, 2007 at 14:28:58:
I am not an investor(yet).a conventional loan is the only way to go. This may b illegal but-i buy for 100k, and have seperate legal doc to pay the other 150k at sale w/ time limit&restrictions. is that fraud??? if they would hold mortage, what options i/we have? how can i do it?
as u know i am a newbie. no disrespect intended.
tnx in advance.
-Jake
Re: Friend wants out.equity$$$(cre financing???) - Posted by Jim (FL)
Posted by Jim (FL) on September 12, 2007 at 11:46:40:
It is fraud if you dont tell the lender providing the 100k that there is a second lien being generated for 150k. However if you fully disclose that second lien, then it is not fraud.