You wipe out credit card debit and move savings straight the HELOC while putting any loan on top of that as well thus increasing cash flow while lowering interest. 

You may also have usury laws to contend with in your state depending on the type of property sole and transaction.Another matter related to interest is that a seller can not charge points, that is pre-paid interest and seller financing is an installment arrangement loaning equity based on a sale price, not cash.In serving your client's best interests, it is better to advise competent assistance by a professional, such as a CPA would in a legal matter.

$122k is purchase price, closing costs:$1,136 estimated prepaid items$3,253 estimated closing cost fee$467 discount (if borrower will pay)total $4,856.

Debit, credit or bank ach. 

You can add closing cost and prepaid but not cash out.

Credits: Security Deposit:  $     800.00 Other Rent:  $               -   Other Deposits:  $               -   Total Credits:  $     800.00 Debits: Rent for Period 10/01/2018-10/31/2018:  $     800.00 General, Damages, Repairs and Disposal: Low Mowing:  $        40.00 Remove Weeds  $        25.00 Key Replacements per Lease Agreement (3 Keys @$50.00)  $     150.00 New Locks  $     100.00 Repair Drywall large holes in Living Room and remove nails  $        25.00 Replace and change All Light Bulbs (8 total @ $5.00 each)  $        40.00 Painting of Living Room, Dining Room, and both bedrooms due to damage beyond normal wear and tear (20 hours @ $30/hour  $     600.00 Kitchen: Refrigerator Cleaning  $        75.00 Oven Cleaning  $        75.00 Oven Drip Pan Replacement  $        35.00 Sweep and Mop Floors  $        25.00 Total Debits  $  1,990.00 Total Credits  $     800.00 Total Debits  $  1,990.00 Total Due to Landlord   $  1,190.00 

For a conventional loan, Fannie Mae guidelines say, "The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan"

If we paid with a debit card like DR wants us to, we wouldn't have had those experiences.

If you are paying points, to me its generally because you are working through a broker, or perhaps you are buying down the rate, its not necessarily a conforming loan (i.e. an "investment" convetninoal), or you just have an expensive lender.If its a rate buy down, then you would be accepting a higher rate if you didn't want ot pay the points.Its says that $3730 is prepaids. 

There's no way I would ever accept "prepaid" rent, lots of reasons.