Structuring the deal

[Clifford Datan]

Hey all, my wife and I are looking to purchase our first investment homes and will be out of state. We are currently pending on our HELOC that we will be using to fund the down payment of which will be coming sometime hopefully this week.

The investment home is essentially a new construction home going for $255k. I understand that this may be a new construction home and all builders are different as well as the shifting of the market but, I was wondering to make the offer below and want to see if this is something that makes sense or if it’s not a realistic approach.

Happy for any feedback, thank you.

Current sales price: $255k

Offer: $204k (80% of sales price)

Down payment: 20%

Total Loan: $163,200

Closing Cost: Builder to pay

[Clifford Datan]

@Grant Schroeder

Hi I grant thanks. I’m not sure if Arizona allows that. The lender I spoke with mentioned that MI won’t go away until I’m I’ve reached 20% equity on the investment home. Although, it would be great to put only 10% down.