conversation: User (___FLASHOUT___): "I am looking to purchase a home from a private seller that I trust a lot. The home needs a new roof and the breaker panel changed from a fuse panel to be insured properly. As a first time home buyer, I can purchase the home with 2% down. If I get a construction loan that would give me the cash to repair the home, I would then need to pay 10% down.\n\nCan the owner artificially raise the asking price just to hand me the extra cash afterwards for repairs. I would still be eligible for the 2% down AND have the cash for repairs.\n\nWould I run into gift tax and have to report it as income? Am I even allowed to do this?"
  Self: " I know in Canada you can include the cost of renovations in the sale then draw them out once they have been completed. \n\nBasically, they take the asking price, then will give you up to an estimated value of the home once renovations are completed. An inspection will need to be done to ensure the work was completed before the bank/lawyer will release the funds.\n\nIf you’re not in Canada, sorry I can’t be of any help. "
  