Posted by Kiersten on July 27, 2001 at 09:57:05:
They have to sign something stating that the contract provided to the lender is the entire deal, that there’s nothing being done between them and you that would provide an inducement to sell. Certainly, agreeing verballing to finalize a loan after closing or to purchase art for 20K is an inducement so you basically have to ask your seller to commit fraud. Is that something you really want to do? And, perhaps this isn’t an issue, but you will have to come up with the 10% plus costs upfront and source that money (show you have either had it for 2 months or show where it came from) for your lender. What you are suggesting is illegal but CAN it be done? Sure–if you and the seller really want to do that. The way to borrow 100% is to get approved for a 100% loan (they are RARE and very tough if you find them). If you apply for the Fannie 90% investor loan (which I assume is what you have approval for) then you need your 10%. Have your lender look into some non conforming investor loans at 80% that will allow a 100% CLTV and then you can have your 20% second. The 1st rate will be HIGH because this type of loan is higher risk to the lender.