Depends on the loan, but no you usually can’t walk away with $$ at closing. On the HUD1, the 6.5K would be given paid by the seller to “_______” (fill in the blank) for repairs. NOT credited to you. Now the lender won’t know who your John Doe repair guy is nor do they care because it’s an expense on the seller’s side and doesn’t affect your numbers. A bill from John Doe needs to be given to the title agent for the 6.5K in repairs and once she is able to fund the loan (same day usually) she cuts a check to John Doe for that amount. What he does with it after closing is his (your) business. Make sure the contract doesn’t make a huge issue out of these repairs and doesn’t state anything about “credit” or “for the buyer”, etc.
I have a SFH deal that I have a contract on and now I need some help structing the finance so it is best for me (ie least out of my pocket). The property is a 4 bed SFH in Atlanta in reasonably good shape. I have a contract on it for 79K with the seller crediting me at closing 6.5k. (but I don’t know if this part will fly with the mortgage companies) which means I am actually paying 72.5 for the property. the comps in the area sold for 90K. I have good credit and the money to pay 5% but I would like to find a way to use OPM on this deal. Any thoughts?
BTW - Will a mortgage company allow me to get the 6.5k back at the closing table? The way the contact is written it states that it is for repairs.
Thanks and this site is great! Thanks for the knowledge.