is there a mortgage like this?

[tyler19]

First time home buyer

Find a home that is selling for 20k less then value.
Get loan for home that is full value.
Use the extra 20K to pay debt and wrap it into the mortgage.


Thanks.

[heistheanswer]

Tyler, the answer to your question is that if and only if you make an agreement with the seller outside of closing to pay you back 20K you can do this. The challenge is that the seller will be taxed a little more for getting the extra 20K that your going to put into your pocket. So here's what you do, example of 100K value, seller wants 80K:
Purchase price= 100K
Seller gets 100K at close and then after close he writes you a check for 20K less the taxes he'll have to pay on the additional 20K. Nobody can know about this except you and the seller, but definitely NOT THE REAL ESTATE AGENT OR LENDER (unless your agent is cool). Now you have an extra 20K to do repairs, pay off debt, or whatever you want. I hope that helps, take care.