Can I increase loan amount to fund repairs?
Under contract for a property, the purchase price is 80k on the contract. The loan is for 75k. I'm about 2 weeks into the loan process and found out the repair costs are going to be larger than anticipated. The seller agreed to give me 15k at closing, but I'll still be about 10k short.
I was wondering if there was a way the seller and I could modify the purchase agreement, raise the purchase price to 90k (home appraised for 95k), and then have the seller give me the 15k agreed on plus the other 10k in increased sale price?
Would doing something like that cause a red flag for the bank and extend the loan time?