Wrap help
Seller has a mortgage for 125k and wants at least 25k cash as a downpayment.
If I give her 25k down and take over the mortgage of 125k then our purchase contract should be for 150k, right (125 + 25)???
Also, how will this affect the seller if they want to buy a new house of their own? They are current on the mortgage, and I'll pay on time too. Will the bank include this in their debt to income ratios??
Thanks BP
Yes, you put 25k cash on the cash line and the loan balance (125k) on the financing line.
It will affect their DTI and show up on their credit report when they apply for another mortgage.
