I always get $1000's at closing! Need more!

[peckerpeck]

What is the name of your state?What is the name of your state? CA


I have a lender that without fail can give me the higher of these 2 values:
1. purchase price of the property
2. 80% of the appraisal of the property

The properties I buy appraise quite a bit higher than i am buying them for. So, therefore, every one i buy, i pocket about $7,000 at closing. BTW, these properties are out of state.


Couple of questions...

1. Is this legal for the lender to do?

2. He has a low lending limit and therefore, I need to find another source since I will soon hit that limit. Can anyone tell me of a lender who is able to do this?

I cannot find any other lender that does this. :\

 

[HomeGuru]

What is the name of your state?What is the name of your state? CA


I have a lender that without fail can give me the higher of these 2 values:
1. purchase price of the property
2. 80% of the appraisal of the property

The properties I buy appraise quite a bit higher than i am buying them for. So, therefore, every one i buy, i pocket about $7,000 at closing. BTW, these properties are out of state.

**A: that is pure BS; the lender is allowed to give you a loan to value based on the purchase price or appraised value, whichever is LOWER.
**********
Couple of questions...

1. Is this legal for the lender to do?

2. He has a low lending limit and therefore, I need to find another source since I will soon hit that limit. Can anyone tell me of a lender who is able to do this?

I cannot find any other lender that does this. :\

**A: your lender may be dealing with hard money sources and have stetched the underwriting guidelines so far from the industry norm. Compare their guidelines with say, the FreddieMac, FNMA, VA/FHA underwriting guidelines. You have been dealing with predatory lenders..........