Is this considered Mortgage Fraud? Let’s say that I’m selling a completed rehab for $100k. I will either be selling it as FSBO or with a Realtor. A prospective buyer has everything needed to get financed to close the deal except the financer wants $10k down. Can I sell the house for $110k then cut a check to the buyer…legally? Or could I even sell it for $113k, cut check for $10k to buyer and myself a check for $3k?
I run my businesses legitimately. I want everything to be legit.
In my opinion, anything done outside of what show’s up on the HUD is fraud. If you write a check after closing (so it doesn’t show up to the lender) that’s fraud.
There is a better and totally legal way to give the buyer up to 10% downpayment money. You can use a downpayment assistance program that allows you do this. There are several to choose from. One that I know about is Partners in Charity. You can check them out at http://www.partnersincharity.org