Updated 4 days ago on . Most recent reply

Looking for Lender Guidance on $20K Seller Credit Deal Structure
Hi BP Community,
I’m working on a deal in Houston/Pasadena, TX and could use some insight from those with experience.
- Purchase Price: $185K
- Seller Credit: $20K applied toward rehab at closing
- Effective Net Purchase: $165K
- ARV (conservative): $220K – $230K
- Rehab Budget: ~$20K–$25K (HVAC, bathrooms, floors, cosmetics)
- Exit: Refi into DSCR or conventional in 12–18 months
I’m trying to confirm with lenders how the $20K seller credit will be treated:
- Will hard money lenders allow this structure and apply the credit directly to rehab?
- If not, how do I best position this so it’s workable?
- Any recommendations for investor-friendly lenders (HML or DSCR) in Houston that have handled seller credit situations?
Goal is to make this a clean BRRRR deal with minimal cash in. Appreciate any advice or lender recommendations!
Thanks in advance!
— Christopher McDaniel
Most Popular Reply

Typically credited it as cash required to close as long as appraisal comes in clean.
you would still need rehab funds or get financing on those:
I would be concerned about refinance as the ltv when renovation is complete is very high and DSCR typically on refinance may not go as high as you need
- Chris Seveney

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