Credit at Closing for Rehab Costs

[Zachary Jensen]

Is it possible to get a credit back at closing to help pay for rehab costs?  For example, I agree to buy a house for 100k but we close for 120k with the expectation that the seller will give me 20k at closing.

[Aaron H.]

Sure - anything you can negotiate is possible...

[Tom Shallcross]

@Zachary Jensen - yes it is possible to do this, but if you are financing the property than you need to check with your lender as they may have a restriction on the credit amount. 

I had a situation in a recent close where we negotiated a 10k credit but the lender would only allow the maximum amount of the credit to be equal or less to my closing costs.  We were able to adjust the purchase price to get squared away (as the closing costs were less than 10k).  In your situation, it sounds like you're looking for actual cash at the close, so adjusting the purchase price wouldn't work.  

I'd check with your lender if you're financing.  If you're not financing, then I don't foresee an issue, but I would recommend a quick call with your attorney just to be safe.