Renovation Credit

I am not an expert, but my understanding is that most banks will not allow this, even if they are only asked to finance based on the actual price/consideration. There is a 6% cap on concessions, but it is usually limited to closing costs in practice. This is what we heard in attempting something similar.. I will also be interested in others' input.

When I bought a house in another state, a pre-negotiated renovation credit was applied at closing. No money actually changed hands from the sellers to me. In the escrow instructions, a line item was included about the $$ credit. The escrow documents provided an accounting for both the sellers and the buyer (me). Along with other costs like real estate commission and certain taxes, the credit was subtracted from the amount the seller would receive in funds after closing, and it was subtracted from the amount I needed to bring to the table for closing. The lender didn't care because I was putting down 35 percent. But there was no co-op board, of course, so maybe this isn't helpful for you.