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rsalameh
3 Posts |
 Posted - 02/08/2008 : 3:50:38 PM
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| I have a client who wants to purchase a house for 200K and want to payoff his debt at the same time. Countrywide says thay have a FAST EASY Program or something where the borrower can payoff credit card within the transaction.. If this is available somewhere please let me know. |
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katbunk
2198 Posts |
Posted - 02/08/2008 : 3:52:55 PM
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Are you talking about financing the credit card into the loan?
Or simply paying the credit card through the closing? |
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rsalameh
3 Posts |
Posted - 02/08/2008 : 3:54:04 PM
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| paying the credit card through the closing,,, thanks |
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KHufford
6019 Posts |
Posted - 02/08/2008 : 4:00:58 PM
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| You cannot do that on a purchase. He can buy it, and if there is 'equity'. He can turn around and do a cashout refi right away. Assuming they have good credit. |
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smoothlid
419 Posts |
Posted - 02/08/2008 : 5:11:07 PM
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you could do a lender credit & apply towrds the cc balance, use a seller concession to cover closing costs, & have client use his money he would have used to pay costs to pay the cc off at closing.
we have done this many times...car loans too.
you can also have them put less down & use towards cards |
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smoothlid
419 Posts |
Posted - 02/08/2008 : 5:13:36 PM
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quote:
Originally posted by KHufford
You cannot do that on a purchase. He can buy it, and if there is 'equity'. He can turn around and do a cashout refi right away. Assuming they have good credit.
why would you do this? if there was equity, it would be because they put money down..so just put less down & payoff the card....why on earth would doing 2 back to back loans make sense?? am i missing something? |
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KHufford
6019 Posts |
Posted - 02/08/2008 : 5:40:33 PM
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quote:
Originally posted by smoothlid
quote:
Originally posted by KHufford
You cannot do that on a purchase. He can buy it, and if there is 'equity'. He can turn around and do a cashout refi right away. Assuming they have good credit.
why would you do this? if there was equity, it would be because they put money down..so just put less down & payoff the card....why on earth would doing 2 back to back loans make sense?? am i missing something?
Yes, you missing something..it works like this:
Home appraises for 200k
Buyer purchases it for 180k with 100% financing
Turn around and refi based on appraised value for up to the full 200k, taking cash out on another 100% loan.
Obviously a little harder right now, but it was very popular over the last year. |
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gravalos
95 Posts |
Posted - 02/08/2008 : 6:45:40 PM
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| Doesn't a VA loan allow seller to pay off buyer's debt at closing? |
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Ruby2sdae2
294 Posts |
Posted - 02/08/2008 : 9:37:06 PM
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| I don't see why it couldn't be added to the 1003 as paid off at closing and then that is just extra money having to be brought to closing. I have seen it done conventionally many times. Not sure about govies of course. |
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rsalameh
3 Posts |
Posted - 02/09/2008 : 01:02:20 AM
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| Thanks everyone, amazing points from smart people.. |
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Scrooge McDuck
8880 Posts |
Posted - 02/09/2008 : 07:54:32 AM
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| i had fremont make me put a bunch of debt into a purchase before. but that was the only time i had ever heard of it. so call fremont... |
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