All Forum Posts by: Nick Hawkins

Message I sent to my lender: Based on what we talked about, the sale price of the house will be $125k with a $30k gift of equity down payment That means that you are going to pay off the existing $125k loan and write me a mortgage for $95k, end of story. I really like that plan but, to me, it seems like the numbers are expecting my mother and I to bring the $30k to the table at closing, which I can’t do. In my mind, using round numbers, the sale price would be $155k minus the $30k gift of equity down payment for a mortgage on the remaining $125k. This is the response I got: The 30K is not in cash it has already been paid and is equity. Thoughts??

My lender seems very confident and "has done several of these over her 16 year career". Message I sent to my lender: Based on what we talked about, the sale price of the house will be $125k with a $30k gift of equity down payment That means that you are going to pay off the existing $125k loan and write me a mortgage for $95k, end of story. I really like that plan but, to me, it seems like the numbers are expecting my mother and I to bring the $30k to the table at closing, which I can’t do. In my mind, using round numbers, the sale price would be $155k minus the $30k gift of equity down payment for a mortgage on the remaining $125k. This is the response I got: The 30K is not in cash it has already been paid and is equity. Thoughts??

Message I sent to my lender: Based on what we talked about, the sale price of the house will be $125k with a $30k gift of equity down payment That means that you are going to pay off the existing $125k loan and write me a mortgage for $95k, end of story. I really like that plan but, to me, it seems like the numbers are expecting my mother and I to bring the $30k to the table at closing, which I can’t do. In my mind, using round numbers, the sale price would be $155k minus the $30k gift of equity down payment for a mortgage on the remaining $125k. This is the response I got: The 30K is not in cash it has already been paid and is equity. Thoughts??

I am buying an investment property from a family member for the $125k that they owe on it. The house appraises for $160k so I'm getting a $30k gift of equity to use as a down payment. The lender is telling me that the sale price will be $125k and that is what they are going to pay off of the existing $125k loan and give me a mortgage for $95k. That is the sale price minus the $30k equity down payment but I am having trouble wrapping my head around it. Can someone help me understand the lender paying out $125k and giving me a mortgage for $95k?

I am buying an investment property from a family member for the $125k that they owe on it. The house appraises for $160k so I'm getting a $30k gift of equity to use as a down payment. The lender is telling me that the sale price will be $125k and that is what they are going to pay off of the existing $125k loan and give me a mortgage for $95k. That is the sale price minus the $30k equity down payment but I am having trouble wrapping my head around it. Can someone help me understand the lender paying out $125k and giving me a mortgage for $95k?

I am buying an investment property from a family member for the $125k that they owe on it. The house appraises for $160k so I'm getting a $30k gift of equity to use as a down payment. The lender is telling me that the sale price will be $125k and that is what they are going to pay off of the existing $125k loan and give me a mortgage for $95k. That is the sale price minus the $30k equity down payment but I am having trouble wrapping my head around it. Can someone help me understand the lender paying out $125k and giving me a mortgage for $95k?