can you up the asking price on a purchase agreement?

Question

buyers can only obtain 95% financing

Answer 1

So there was never an agreement then.

Or that the agreement is void or breach.

Answer 2

Just by the nature of the question I am going to assume you are purchasing/selling a FSBO property. Simply put: yes-- as long as both parties agree in writing. It is not uncommon for the seller to up the asking price by a set amount and the seller owes the buyer that same amount as a closing cost. This allows the purchaser to get more money from a lending company, and often through a second organization, can borrow 100% of the required funds. The second reason for doing this is that lending companies do not like to give out a loan for more than the property is worth, which really hurts the purchaser if improvements need to be made. By upping the asking price then having the seller refund the added expense as a closing cost can provide the buyer with additional funds for improvements.

Answer 3

Upping the price isn't going to change the fact that they can only get 95% financing. They are still going to have to come up with 5% only on a larger amount.

If you are considering doing a forgiven second, bear in mind, it is a federal crime for the buyer to give false information to the mortgage company. If you have REALTORS involved they will not (or rather should not) be a party to anything like this. They can loose their license in addition to hefty fines.

Answer 4

yes-as long as the buyer(S) agrees to it. The old price would need to crossed out and the new can be handwritten with both the buyer's initials/signature attesting they agreed to the new price. But way would they? They don't have to.

Answer 5

Not if the agreement has been signed already!

Answer 6

I think you know the answer just don't want to here it.