Mortgage decision?

[Anonymous]

First note, the house is owned by a family member and I already live in it. I am pre approved for what the house is appraised at. I am being sold the house for 30K less than the appraisal. Do I take a mortgage out for the full amount so I can pay off my studen loans or take the mortgage out for the amount Im being sold the house and then apply for a home equaty loan for the difference to use for SL's?

[Anonymous]

we would need more details, but...

Generally you would not be able to do a cash out purchase like that.  You would have to do the equity or 2nd mortgage route for the cash out.

Those are tougher to get and may require the original mortgage to be open for a certian period.

depending upon your fico, etc  you will not ba likely able to pull out 100%.  Likely you will only be able to "cash" out a total of 85-95% of the equity.

[DallasLoanGuy]

you cannot roll in other debt

you could do equity loan later. but you will likely need to be in the home a while.

[Anonymous]

I would be give the difference from the person that owns the house. the 30K is on the lesser side. Meaning the full loan is still under 9% of what the house is werth.

[Anonymous]

owner can not generally give you cash at closing.

[MattH]

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@Anonymous wrote:
owner can not generally give you cash at closing.

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Exactly, the bank likes hard cash from the borrower as a demonstration of having been able to save in the past and in order to insure that the borrower has some equity from the start.  Cash from the seller has been proven to be associated with significantly higher risk of default so most lenders prohibit it.