Looking for a cash out loan

[Josh Cowan]

Need some help with who to turn to. I'm looking to do a cash out loan on my house I have one offer, waiting on a second. Does anyone know any mortgage companies willing to pay the va funding and closing costs? Or negotiate to pay partial?

[Zack Karp]

Any lender is able to do that.  It's called a lender credit, which is created by you selecting a higher interest rate.  Let's say the lender offers you 3.5% with full costs.  You can instead elect to pay 4.0%, and they in turn give you a credit to pay the costs.  I am using fictitious rates to make a point here, this is not a rate quote.

There is no such thing as a free lunch :)

This is especially useful in flips and short term situations where you know that you will either sell or refi in the first few years.  You will come out ahead with the credit versus the higher interest paid.

Hope that helps!