We did it again! After being turned down by another lender because the house he wanted to purchase wouldn’t pass the appraisalAn appraisal is an independent, professional opinion of a property's value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the... More process, we helped Mr J to get financing to purchase the home. Here’s how it went: he found a great house for only $75,000. That’s right! A single family home that had needed some work. The appraisalAn appraisal is an independent, professional opinion of a property's value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the... More came in at $78,000 so he was able to finance $3000 in repairs. The types of repairs on this house were: fix a section of the roof that was leaking, deal with a damp basement issue (sump pump & ventilation) and take care of some much needed painting. The type of loan we used was Rural Development. Our borrower negotiated for the seller to pay closing costsClosing costs are the fees and charges due at closing beyond the down payment itself — the collection of costs that pay for all the work, insurance, and government processes required to originate a loan and transfer (or refinance) a property. They... More. He gave an upfront deposti fo $100, paid a $400 appraisalAn appraisal is an independent, professional opinion of a property's value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the... More fee and ended up receiving all $500 back at closingClosing is the meeting — typically in person — where all parties sign the final loan and property paperwork and the transaction becomes official. It’s the last step in the process, the point where months of paperwork, verification, and waiting turn into... More — making his total cash investment into the purchase was zero!! His monthly payment — including tax & insurance is just $705/month!!! These are the kinds of transactions I love to do!