Update: Received GFE from the broker which request "Prepaid Items/Reserves" of $2.8k!!

I suspect the hud showed a debit to the seller and a credit to the buyer

I'm looking into securing lines of credit through seed capital LLC, I have maxed out my debit to income ratio with banks and I am self employed, has anybody used this product and is it worth the hit to your credit score?

The issue that they have is that there credit is horrible and they filed for bankruptcy chapter 13 and it obviously reflects on their credit even though they did not go all the way through with it and ended up paying off some of their debits.

Here are the details:Option 1:Purchase price:  $37,000Down payment: $7,400Closing costs with 30 year mortgage: $2743 plus $987 pre paid costs due at closing (tried to negotiate some of the origination fees but the bank wouldn't budge one penny)Monthly payment with 30 year:  $272.72Interest rate:  4.5%Option 2:5 year balloon amortized over 15 yearsSame purchase price and down paymentClosing costs:  $1527 with no escrow so no pre-paid costs up frontMonthly payment:  $327 (including insurance and taxes that will be paid separately)Interest rate:  4.75%The bank only charges a $350 renewal fee at the end of the 5 yearsMonthly rent after management will be between 585 and 630. 

Everything else appears to be there, whether they are accurate (such as prepaids) or not I have no clue, but at least he has something there so Im just taking the assumption he is being honest. 

And they are most certainly not prepaid interest in a hard money loan, nor are they amortized over the loan term.

Since you don't state the interest rate in the original post, I can conclude you are of the opinion that she should file BK and discharge the credit card debit.

We got a check book with carbon copy checks and no debit card attached to the account to facilitate tracking the money.  

UNLESS....it's a recurring payment system so that it debits the renter on the 1st of the month without their interaction.