I am looking to buy a home with an FHA loan.
2007-07-15 17:24:53 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If I received an offer requesting cash back at closing, I would tell my seller to straight out reject it.
2007-07-15 17:50:59 · answer #1 · answered by godged 7 · 0⤊ 0⤋
My realtor told me that there are ways of doing it, but it is not legal. If someone offers you cash back on your loan, it means you are paying more for the house than it is worth. If the appraiser says the house is worth 150k and you want 20k cash back, you would be asking the bank to do 108% financing, not to mention closing costs. Most banks will not give you aloan for more than the house is worth. If you can find a house for sale that is under value, you can purchase it for less than appraisal and then re-finance. Make sure your first lender does not have an early pay-off fee. Also, many re-finance companies want you to be in the home for 1 year before re-financing for cash out. Good luck!
2007-07-16 00:33:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
NOT TRUE, NONE OF THE ABOVE!
You can receive cash back in different ways.
If you are purchasing a home, you can get the seller to pay up to 6% of recurring and non recurring cost. Whatever is left after call the closing cost is given back to you.
If a seller is motivated they can also offer you cash back.
Your agent is paid by the seller of a home, your agent can give you cash back.
There are ways to get money back without upping your purchase price.
Just know which method they are using.
http://ww.myfinancialcorner.com
2007-07-16 01:27:39 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Some states do allow this however full disclosure is required. If you are getting an FHA loan this practice is prohibited by HUD so there's no way even if state law allows it.
2007-07-16 00:42:01 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋