No Closing Cost Mortgage

LostKoss asked:


I asked a similar question earlier today and a couple people said it would be fraud.

Looking around the web it is suggested on several websites as an option for home buying , but I can’t post the links.

We own our house valued at 70k.
We have a small home improvement loan out now 15k.
We want to buy a 125k house so we need 25k down.

Our mortgage broker suggested a line of credit, we can buy the house we want.Move.Fix up the old house a little bit.
Sell it.Then pay off the HELOC.

What is fraudulant ? I want the HELOC specifically to buy another house.

My broker said it would be cheaper interest than a 80/20 or 100% financing or even a bridge loan.(I should mention that he is a friend of the family and not likely to steer me into something illegal knowingly.)

Any advice would be greatly appreciated.

Thank you in advance.

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Joy asked:


My house lost $200,000 in value. I’ve been current on my mortgage payments. I want to do a short sale and buy a smaller cheaper house. How will a short sale affect my credit? and will this prevent me from buying a house in the future?

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