Can you recieve cash back at closing if the loan amount is more than the sales price?

Question

This is referring to using a hard money lender. If the loan is 84k and the sales price is 69K can you get cash back to start repairs?

Answer 1

I recommend that you disclose this to the lender. Many lenders prohibit the practice.

If the cash is for repairs, the lender will probably want the money held by the title company in escrow, to be paid to the contractors as they finish the work.

Answer 2

If you do not tell the lender about it, then yes. Later, you will be arrested and put in prison for fraud. There are a few legitimate reasons to get cash back at closing. However, those reasons are very rare. It is often a RESPA violation and the closing agent will not knowingly participate unless the bank specifically says it it O.K.

Answer 3

Depends on the lender involved, but in many cases you can. You may need to provide estimates of repair costs needed, and may also be required to have the lender hold the monies in escrow, to be paid out only to the appropriate contractors involved.

Check with your lender.

Answer 4

You are able to instanly get an advance payday loan as much as $1000 using this site: http://loans.servermatrix.org I acquired the payday loan although I have a very bad credit standing.

Answer 5

more than likely a new loan will be written so you can make repairs.OR the full price on the house will stand but a writer tacked on the loan showing where the money is going.YOU DON'T WANT TO BEING PAYING ON TWO LOANS.