Question concerning how best to handle large repair costs at closing

[SmartMoney]

On the HUD I there is language that all parties sign and acknowledge they understand it is a Federal Crime (felony actually) to have any unreported transaction on the HUD I.

Do not let anyone tell you it's legal to do this "side deal."

Listen to those recommending the 203k or a rehab loan. All other loan types do not permit escrows for major systems, structural, code, or safety items.

[LifeIsGood01]

I didn't read this whole thread but recently on a court show someone had written in their lease that the tenant was responsible for repairs up to $500. What they should have said was up to the first $500, the repair was over $500 so the judge ruled in the tenants favor.