@Bryan Hartlen You will have prorated property taxes, lenders fees, insurance that sometimes has to be prepaid, inspection fees., appraisals etc.Best thing to do is speak with a title company or closing attorney in the area you are looking to get a schedule of fees.

@Dave Foster Another question: how does adding a credit for prepaids to the purchase price affect the net gain? 

@Bridget PostonI just usually put in my offer to purchase "seller to pay up to $4000 towards buyers points, pre-paids and closing costs".

I have prepaid some principal but I do not count that as cash in at this time due to the fact it was completely discretionary + since I have a full time job, I was choosing to throw a little bit of spare change towards the mortgage on top of what my tenants were paying me.

. - The Delayed Financing guideline is pretty straightforward (straight from the Fannie guidelines):“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 (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value).”Two key points:• There’s a time and a place for Delayed Financing (DF).  

The seller can only pay your closing costs and prepaid expenses up to a limit which is different for each loan type and can vary by the down payment.I would recommend you get a cosigner on a single-family home. 

All notices required or permitted under this Agreement shall be in writingand shall be deemed delivered when delivered in person or deposited in the UnitedStates mail, postage prepaid, addressed as follows:IF for The Seller and/or The Buyer:______________________________________________________________________Address:_______________________________________________________________Print: _______________________________________Date:___________________________IF for The Consultant:______________________________________________________________________Address:_______________________________________________________________

Maybe Prepaid legal?

I was certainly a little surprised tonight to see that the expected closing costs for the loan (including prepaids, etc.) was $3900.

If her lease is not valid, you can provide her with the appropriate notice required by state law to leave, and she can sue her former landlord for her prepaid rent.