Inspection Objection Resolution Options

[Kyle Greer]

Hi Everyone-

I wanted to take the opportunity of having a quick question to also say hi as a new member. I've listened to a ton of BP podcasts and learned a lot. My fiance and I are excited to be under contract for our first home which has a basement (finished sq footage, but needs work) that we're going to fix up and rent.

My question revolves around inspection resolutions: 

Our lender is offering us a "credit" of 2 points on our loan upfront to cover closing costs (and taking a higher loan, 30-year conventional fixed). This amounts to 2% upfront cash savings, about 4000 which we're planning to use for repairs. Our break-even on this is about 7 years, but we'll probably sell before then so this makes sense.

In our inspections, some dormant mold came up in the attic and the seller settled on 3k towards closing costs. It's important that this cash is liquid also after closing for those (and other) repairs. 

The problem that we're just realizing is that the 2 points "credit" we're getting from the lender brings our closing costs to zero, so the inspection resolution has no cash pool to contribute to. They're telling us that the only alternative is a 3k reduction in purchase price, but obviously this isn't as beneficial for immediate repairs.

Is there another way for the seller to concede 3k so we can have that upfront cash savings for repairs? I know that it can't legally be in cash, (but I don't really understand why) so are there alternatives? We'd love to be able to take the 2 pts upfront savings and the 3k from resolutions (7k total) to have available upfront for repairs.

Thanks in advance for the tips! Glad to finally be saying hello!

Kyle