The only way this is possible is if the home is valued for more than you are paying,ie instant equity. If so you can take a larger loan and get the cash. We did this on a refinance. You will need an appraisal stating that the home is in deed worth $40-50,000 for the bank to do this. They won’t care what you do with the extra money as long as you pay them back.

No bank is going to advance you 40 or 50,000 on a mobil home that sells for 30,000 even if you have an 8,000 down payment. If you go and talk to a bank you will find out this is not a possibility.

All of a mortgage goes to the seller. There are some exceptions for fixer-uppers but I doubt that mobil homes would qualify.

Your $8,000 down payment wouldn’t be extra money. The bank would take it and the loan will be $22,000. The bank won’t loan you anything more than the purchase price as stated in the contract, and that figure will be adjusted by your down payment. If the appraisal on the home falls short of the agreed purchased priced, the bank will only finance up to the appraised amount. The home is collateral in the event you default, they’re not going to loan additional money that’s not secured.

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No. The home loan won’t exceed the purchase price. If you’ve been pre-approved for a home loan in the range of 40-50k, if you purchase a home for 30k, the bank will only finance 30k. You’ll never see the money as it will be paid the the seller or current lien holder by the title agency (or attorney) that you use for closing.

The banks also don’t look favorably upon down payments that have been borrowed. You also have to factor in closing costs.

If the money is borrowed, it will be counted as a debt and will be taken into account as far as your debt/income ratios. Typically, if the bank is going to lend you 30k for the house, you cannot get an extra 8k to pay someone back or consolidate bills etc. In short, I don’t believe you will be able to secure this type of financing.