Mortgage Loan question with closing cost?
So I am planning to buy a house from a friend. I have enough money to pay the closing and the required FHA down payment. If I used the many for those purposes, I won’t have much left to fix up the place to my liking. My friend is not using any realtor so there are no commission involve. He is selling to house to me for $ 46k and the value is $ 62K. If my friend gives me the $ 5,000 to close, can I tell the bank that my friend is selling the house for $ 51K instead of $ 46K so he can get his $ 5,000 back? Or will the bank allow me to roll the closing cost into my FHA loan since there are enough equity to cover the closing cost?